The Port of Tacoma has achieved net present value savings of $5.3 million by re-financing its long-term debt at favorable interest rates.
On November 30, 2006, the port competitively bid $111.5 million of revenue and general obligation (G.O.) bond debt, formerly at interest rates of 5.25% and 5.02%, respectively.
UBS, one of the world’s leading financial firms, won the bid for both port bonds. The firm bid 4.43% for $46.5 million in new revenue bonds and 4.32% for $65 million in new G.O. bonds.
On November 16, 2006, the Port of Tacoma Commission authorized Port staff to issue advance refunding bonds. “By taking advantage of current market conditions, the Port is again demonstrating how flexible, yet responsible financial policy can increase the financial capacity of th port,” said Port Commissioner Jack Fabulich. “This action saves the Port of Tacoma approximately $340,000 in interest expense each year for the next 27 years.”
Revenue and G.O. bonds are used to help fund the Port’s Capital Improvement Program (CIP). From 2007 to 2011, the Port of Tacoma’s CIP calls for $336.1 million investment in high-priority projects, such as real estate purchases, infrastructure development and environmental projects.