The Port Authority of Guam and the Guam Economic Development Authority sold a total of $71.445 million of 2018 Port Revenue Bonds, realizing a savings of over $20 million from the initial estimated projections.
Today’s successful sale will also elevate the value of all Guam bonds in secondary market and benefit any future Guam bond sales. “We are extremely excited about the market reaction to the inaugural offering of Port Revenue Bonds in this very competitive environment. Both tax-exempt and taxable bonds were offered for sale,” said Jay Rojas, GEDA administrator, “and all three series of bonds performed way above expectations.
“The two investment grade ratings by S&P and Moody’s, the highest combined rating for any government credit, were instrumental in securing the very favorable interest rates, saving the Port millions of dollars in interest payments,” added Rojas.
The pricing of the bonds in New York today follows two weeks of meetings and phone conversations with numerous institutional investors in Chicago, Boston, New York, and the Philadelphia area, each placing orders during the order period. In total, 54 investors placed orders. This substantial demand resulted in a significant reduction of the Port’s bond yields during the pricing process.
“The result of this successful bond pricing reflects the strength of the management team and the financial stability of the Port. The bond proceeds will be used to start major capital improvement projects that will enhance the port’s resiliency and sustainability for many years into the future,” said Joanne Brown, general manager of the Port Authority of Guam. The closing of the bonds and the transfer of proceeds is scheduled for the late hours of Wednesday, July 11.