Strong demand for bonds reduces interest expense

Wilmington, NC - The North Carolina State Ports Authority sold approximately $44 million in bonds on February 24, 2010 to support port terminal expansion projects, including reconstruction of a container berth at the Port of Wilmington, and a 177,000 square-foot warehouse at the Port of Morehead City.

Ports Authority CFO, Jeffrey L. Strader, said the Ports Authority’s bonds met with strong demand from North Carolina citizens and financial institutions.

“Investors placed over $160 million in orders for the approximately $44 million available," Strader said. “The strong demand lowered interest rates, saving the Authority a half million dollars over the 30-year life of the issue."

“This also demonstrates investors’ confidence in the Ports Authority’s financial stability and credibility," Strader added.

Ports Authority CEO Thomas J. Eagar said the port terminal expansion projects are vital to the operation of the North Carolina Ports’ existing facilities, as well as to position the Ports Authority for future growth to meet the needs of the State’s business, industry and citizens.

“North Carolina is projected to grow from the 10th most populous state in the nation to the 7th largest by 2030," Eagar said. "Our ports must prepare now to meet the demands of the global economy and the vibrant market here and throughout the U.S. Southeast."

“Our ports must also be able to provide access to world markets to attract major international distribution centers and assembly manufacturing facilities to North Carolina and bring badly needed jobs, investment and growth to our State," Eagar added.

Bond rating agency, Moody’s, gave an A3 rating to the NC State Ports Authority senior lien revenue bonds. Fitch assigned a ‘BBB+’ rating.

The bonds will be secured by the Authority’s net revenues after payment of operating and maintenance expenses. Both ratings are described as solid investment grade.

“Of equal note is that both Moody's and Fitch characterized the outlook for the Ports Authority as stable," said Strader.

Assisting the Ports Authority in the bond sale was Public Financial Management, the Authority’s financial advisors, Morgan Stanley, lead underwriter, Wells Fargo, co-managing underwriter, and Womble Carlyle, Sandridge & Rice, bond counsel.