Authorities from the US west coast Port of Tacoma have announced a net present value saving of US$5.3 million achieved through the refinancing of its long-term debt at what it described as "favourable" interest rates. This comes as the port at the end of last month competitively bid $111.5 million in revenue and general obligation (GO) bond debts, formerly at interest rates of 5.25 per cent and 5.02 per cent, respectively.
UBS won the bid for both port bonds. The firm bid 4.43 per cent for $46.5 million in new revenue bonds and 4.32 per cent for $65 million in new GO 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 the 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 GO bonds are used to help fund the port's Capital Improvement Program (CIP), a statement from port authorities said.
UBS won the bid for both port bonds. The firm bid 4.43 per cent for $46.5 million in new revenue bonds and 4.32 per cent for $65 million in new GO 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 the 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 GO bonds are used to help fund the port's Capital Improvement Program (CIP), a statement from port authorities said.