HOUSTON, Aug. 27, 2015 (GLOBE NEWSWIRE) -- Port of Houston Authority of Harris County, Texas completed its previously announced bond refunding on August 26, 2015. The Port Authority issued $115,970,000 par value of Unlimited Tax Refunding Bonds Series 2015A (Tax Exempt Non-AMT), Series 2015B (AMT) and Series 2015C (Taxable), rated 'AAA' by both Standard and Poor's and Fitch Ratings, to refund $128,130,000 par value of prior bond issuances dating from 2002 through 2006.
With an all-in true interest cost of 2.399%, the refunding achieved net present value debt service savings of over $15.3 million, or 12% of the refunded bonds.
"It is our mission to move the world and drive economic prosperity. The Port's capital infrastructure investments, partially funded by bond monies, have contributed to job creation and economic growth for our region," said Roger Guenther, Executive Director. "In light of the lower interest rate environment, we wanted to do our part to reduce the tax rate paid by local citizens for Port-related bonds. We are pleased that the transaction was successful, despite the recent market volatility."
The Port Authority's tax bonds are secured by an unlimited property tax levied on all taxable property within the Port Authority's taxing boundaries, which essentially cover the same area as Harris County.
Since 2012, the Houston metropolitan has been recognized as the largest export market in the United States. The Port Authority has developed a robust capital improvement plan to keep pace with the increased growth in cargo and shipping capacity to accommodate demand for goods and services in the Gulf Coast region and beyond.
Citigroup led the underwriting, along with Backstrom, McCarley Berry & Co., LLC, Morgan Stanley, Baird, Raymond James, Coastal Securities, Inc., and Wells Fargo Securities. The team also included First Southwest Company, financial advisor, Bracewell & Giuliani LLP, bond counsel and disclosure counsel, Andrews Kurth LLP, counsel to the underwriters, and Amegy Bank, paying agent and escrow agent.
About the Port of Houston Authority
For more than 100 years, the Port of Houston Authority has owned or operated the public cargo-handling facilities of the Port of Houston – the nation's largest port for foreign waterborne tonnage. The port is an economic engine for the Houston region, the state of Texas and the nation. It supports the creation of more than one million statewide jobs and more than 2.1 million nationwide jobs, and the generation of economic activity totaling more than $178.5 billion in Texas and $499 billion across the nation. For more information, visit the Port Authority website at: www.portofhouston.com
The Port of Houston Authority logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=719