Sept 10 Underwriters on Tuesday trimmed top
tax-free yields for institutional buyers of $383.6 million of
revenue bonds sold by Florida's Port of Miami to improve its
cargo facilities ahead of the expansion of the Panama Canal.
The four-series deal - rated A3 by Moody's Investors Service -
came with a final top tax-free yield of 5.58 percent on a 2042
maturity carrying a 5.50 percent coupon, according to a pricing
schedule from underwriters led by Raymond James & Associates.
An initial pricing had the maturity with a 5.625 percent
coupon priced at par.
But the bonds sold at a spread of more than 40 basis points
above similar credits. The yield on single A GO bonds with
29-year maturities ended at the same level as on Monday at 5.15
percent, compared with 5.10 percent on Friday.
Better known for handling 4 million cruise-ship passengers
each year, the port is dredging its channel, building tunnels
for trucks and making other changes for cargo vessels before the
2015 completion of the canal expansion.
The industry-shifting expansion will allow much larger cargo
ships to use the Central America passage and is widely expected
to draw Asian ships to East Coast ports that now drop loads at
West Coast facilities.
Owned by Miami-Dade County, the port handles 1,600 cargo
vessels a year and is spending nearly $1 billion on capital
improvements through 2018.