Silverstein delays bond offer on 4 WTC

December 10, 2010 10:12AM

Larry Silverstein and the World Trade Center site

Silverstein Properties has delayed its scheduled sale of $1.3 billion in tax-exempt Liberty Bonds to finance the first of the developer’s three office towers at the World Trade Center “until the bond market stabilizes,” the Wall Street Journal reported. The municipal bond market has been erratic in recent weeks as borrowers have rushed to take advantage of the federal Build America Bonds subsidy program, which may expire soon without an extension from Congress. Silverstein’s bonds are not part of that program, but in a statement, the company said “it is better to wait until the bond market has stabilized to the point that our Liberty Bonds could be priced based on the strength of our project and the high credit ratings it has received, rather than on the external factors now rolling the markets.” With an expected completion date of 2013, the 4 World Trade Center project has already risen through the 10th floor but needs the bonds to fund the rest. Fitch Ratings said earlier this week that it would likely rate the bonds, which will be backed by the Port Authority of New York and New Jersey, an A+. [WSJ]