Investors Punish Miami Port Tripling Debt to Expand: Muni Credit
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The port of Miami, the world’s largest cruise-ship hub, is selling a record $389 million of debt to boost its cargo business as the Panama Canal expands. Investors are balking, as the plan would triple the facility’s bond load in four years.
With this week’s borrowing, the port joins East Coast rivals taking on debt to finance upgrades in advance of the canal project’s completion, set for 2015. A wider passage would allow larger cargo ships access to cities such as New York, Baltimore, and Savannah, Georgia.