The Port of Oakland announced the sale of $345.73 million in 2011 Series O (AMT) Refunding Revenue Bonds for the purpose of refunding a portion of its outstanding debt. Through this transaction, the port says it achieved $29.2 million in present value debt service savings, and was able to both maximize near-term savings and smooth debt service payments over the next eight years, a period in which the port’s debt remains at peak or near-peak levels. Bond refunding is the process by which new bonds are issued at lower interest rates to replace higher interest rate bonds that are currently outstanding in order to achieve cost savings.
“Debt is weighing down all levels of government and the average citizen, hampering economic recovery, and the Port of Oakland is no exception,” says Pamela Calloway, port commission president. “That is why we have been vigilantly monitoring the markets in order to achieve savings on our outstanding bond debt. While my colleagues and I on the Board of Port Commissioners are pleased with the savings achieved, we will continue to push the organization to aggressively seek savings, investments, grants, public-private partnerships and business growth to get us back on a track toward competitive sustainability.”
