WTC bond sale delayed as investors withdraw from muni market

TRD New York /
Apr.April 11, 2011 03:27 PM
Larry Silverstein and 4 WTC rendering

[Updated at 4:29 p.m.]: In a developing story, the state has delayed the sale of the WTC bonds, Crain’s reported.

The $900 million worth of tax-exempt Liberty Bonds used to finance Silverstein Properties’ development of 4 World Trade Center hit the market after municipal fund outflows reached $1.1 billion last week, a two-month high, Crain’s reported. Though premiums have narrowed since they hit record highs in January, Crain’s said Silverstein may need to offer higher premiums considering investors’ outlooks on the muni-bond market. Because the rates would still be markedly lower than the 5.28 percent achieved in mid-January Larry Silverstein, CEO of Silverstein Properties, does not appear concerned. “We are expecting to achieve the rates that we would have achieved just before the market turned up, so I think we’ll end up pleased with the net results,” he said last week. According to Municipal Market Advisors, yields on top-rated 30-year bonds are currently 5.14 percent. [Crain’s]

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