The Port Authority of New York and New Jersey on Tuesday priced a bond deal it had pulled in the wake of President Trump's "Liberation Day" tariff announcements.
Tariffs still loom large over the deal.
On Monday, the Port Authority added a supplement to its
The supplement said trade policy "remains dynamic" following Trump's imposition of tariffs and other nations' retaliatory tariffs.
He later
The POS supplement disclosed that ocean carriers have canceled 16, or 3%, of the expected port calls at Port Authority facilities through the next three months.
"Other results of a serious 'trade war' might decrease economic activity in the United States including the Port region, and further increase the costs of construction and services for the Port Authority's expansive Capital Plan," the supplement said.
The supplement said that fees the U.S. has announced on port calls by China owned and built vessels — "if they are ultimately imposed" — might cause a reduction in shipping from foreign countries, especially from China.
The Port Authority may be better-positioned than many U.S. ports to weather a hit to Chinese shipping, according to the supplement; China represents around a quarter of the Port Authority's market, it said in the POS, compared to an average of 65% for ports on the West Coast.
The negotiated deal was one of many that were
The deal was supposed to price on Wednesday, April 9, according to the online investor presentation, but the deal team moved the deal to the day-to-day calendar.
The issuance includes serial bonds maturing from 2026 through 2045 and term bonds maturing in 2050 and 2055.
J.P. Morgan is the lead manager, with nine co-managers. Frasca & Associates is the municipal advisor, and Orrick is the deal's counsel.
The deal priced to yield from 3.26% on a 2031 maturity to 4.64% on the 2055, according to a pricing wire published on LSEG's Refinitiv TM3.
The bonds are rated Aa3 by Moody's Ratings and AA-minus by S&P Global Ratings and Fitch Ratings. All assign stable outlooks.
The bonds will be a mix of new money and refunding, the online investor presentation said.
S&P's analysts discussed the potential effects of tariffs, qualifying that there is a "high degree of unpredictability around policy implementation."
"Tariffs and retaliatory tariffs are likely to have a negative impact on volumes and revenues," the report said. "Port fees on Chinese vessels could boost volumes and activity-based revenues as shipping companies unload as much cargo as possible at first port-of-call operators, such as the PANYNJ."
Moody's Ratings last week
Fitch said its rating reflected "PANYNJ's well positioned credit profile, anchored by its mature, diverse and monopolistic transportation infrastructure asset base."
Fitch's analysts praised the Port Authority's financial flexibility, liquidity and the economic strength of its revenue base.
Bonds are backed by the Port Authority's broad and diverse portfolio of revenues; in addition to one of the nation's key freight seaports, it runs the region's three major airports, an array of toll bridges and tunnels, and the World Trade Center.
The Port Authority has plans for extensive capital spending. It's currently executing its 2017-2026 capital plan, and spending for the plan has accelerated in recent years.
The PANYNJ curtailed capital spending while the
