Port Of Everett Gets Historically Low Rate On Bond Sale

February 4, 2020

Everett Economy

The Kimberly-Clark properties are in green. Image courtesy Port of Everett. Click to enlarge.

Okay, not the sexiest news you may hear but good for taxpayers as the Port of Everett announced favorable terms on a bond sale to finance property purchases including the former Kimberly Clark property. Here’s the scoop.

On January 29, the Port of Everett closed on its $26.3 million sale of Limited Tax General Obligation (LTGO) bonds to support recent property acquisitions, including the Norton property in north Waterfront Place and the former Kimberly-Clark mill site.

The Port’s strong Aa2 LTGO bond rating and favorable market conditions at the time of the sale locked the Port in at a historically low interest rate of 3.08% over the thirty-year life of the bonds.

“As committed financial stewards of public funds, this bond sale proved to be an excellent step to support financing for the acquisition of key community and regional assets,” Port of Everett CEO Lisa Lefeber said. “I commend the work of the Port’s finance team for their consistent due diligence and monitoring of the market for financial opportunities like these, which are critical elements to responsibly grow our operations and remain competitive.”

In preparation for the bond issuance, the Port applied for a rating review by Moody’s Investors Service. The review maintained the Port’s Aa2 rating for its LTGO bonds, reflecting the Port’s sizeable and rapidly growing tax base, its participation in the broad and diverse Puget Sound economy, and adequate financial position to finance its five-year, $103 million Capital Improvement Program.

The Port’s Bond and Disclosure Counsel was K&L Gates LLP, Financial Advisor was Northwest Municipal Advisors, Registrar is U.S. Bank National Association and the Underwriter was KeyBanc Capital Markets Inc.

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