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Image of Port of Oakland Announces Successful $345.73 Million Bond Transaction

Port of Oakland Announces Successful $345.73 Million Bond Transaction

Press Releases, Seaport
August 19th, 2011

Press Releases

For Immediate Release
August 19, 2011

Port of Oakland Announces Successful $345.73 Million Bond Transaction

$29.2 Million in Savings Achieved

Oakland, CA – August 19, 2011– The Port of Oakland just announced the successful sale of $345.73 million in 2011 Series O (AMT) Refunding Revenue Bonds for the purpose of refunding a portion of its outstanding debt. Through this transaction, the Port achieved $29.2 million in present value debt service savings, and was able to both maximize near-term savings and smooth debt service payments over the next eight years, a period in which the Port's debt remains at peak or near-peak levels.

Bond refunding is the process by which new bonds are issued at lower interest rates to replace higher interest rate bonds that are currently outstanding in order to achieve cost savings. Bonds are the main type of debt that the Port holds.

"Debt is weighing down all levels of government and the average citizen, hampering economic recovery–the Port of Oakland is no exception. That is why we have been vigilantly monitoring the markets in order to achieve savings on our outstanding bond debt," said Port Commission President Pamela Calloway. "While my colleagues and I on the Board of Port Commissioners are pleased with the savings achieved, we will continue to push the organization to aggressively seek savings, investments, grants, public-private partnerships and business growth to get us back on a track toward competitive sustainability."

Even at the height of the bond market during the fall of 2010, this level of savings was not available. In spite of the turbulent markets over the last nine months, the Port was able to obtain very low interest rates. The resulting savings are the highest known level savings achieved by the Port on a bond refunding.

About the Port of Oakland, CA, USA:
The Port of Oakland oversees the Oakland seaport, Oakland International Airport, and 20 miles of waterfront. The Oakland seaport is the fifth busiest container port in the U.S.; Oakland International Airport is the second largest San Francisco Bay Area airport offering over 300 daily passenger and cargo flights; and the Port's real estate includes commercial developments such as Jack London Square and hundreds of acres of public parks and conservation areas. Together, through Port operations and those of its tenants and users, the Port supports nearly 50,000 jobs in the region and over 800,000 jobs across the United States. The Port of Oakland was established in 1927 and is an independent department of the City of Oakland. Connect with the Port of Oakland and Oakland International Airport through Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.

Media Contacts:

Marilyn Sandifur
Port of Oakland Spokesperson
(510) 627-1193
msandifur@portoakland.com