Port Authority Gets $2.75 Billion in Orders on $2 Billion Issue

Banks managing a $2 billion bond sale for the Port Authority of New York and New Jersey, the biggest issue in its history, took about $2.75 billion in orders for the 50-year debt, according to the Royal Bank of Canada.

RBC, which coordinated the underwriting of the taxable bonds, set the yield at 4.46 percent, or 1.65 percentage point over 30-year Treasuries, said Jaime Durando, head of RBC’s municipal-bond syndicate desk, in a telephone interview.

Before the pricing, the Port Authority said the bonds might offer a yield spread of 1.6 percentage points to 1.8 percentage points above 30-year U.S. government bonds.

The Port Authority runs the New York City region’s three major airports and six marine-cargo terminals. It is also redeveloping the World Trade Center site in Lower Manhattan.

To contact the reporter on this story: Martin Z. Braun in New York at mbraun6@bloomberg.net

To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.