Port Authority nears bond deal to finance 4 WTC construction

TRD New York /
Sep.September 22, 2011 09:28 AM
alternate
text
From left: Port Authority Executive Director Chris Ward, Silverstein Properties CEO Larry Silverstein and 4 World Trade Center

After a five-month effort, the Port Authority of New York & New Jersey has found a way to sell bonds financing the World Trade Center construction while appeasing existing Port Authority bondholders, the Wall Street Journal. As The Real Deal previously reported, if an agreement were not reached by the end of the year, Silverstein Properties would not have enough funding to continue construction on the 72-story 4 World Trade Center.

Port Authority had wanted to issue World Trade Center bonds. To ensure low interest rates it had intended to make the debt obligations on those bonds a priority over the general obligation bonds the agency had previously sold.

But general obligation bondholders, including Fidelity Investments, argued that such a move would be illegal, violating the bond documents that made them the preferred bondholders — crucial to their bonds’ values.

After months of debate with those initial bondholders, Port Authority is in the early stages of appeasing their demands and issuing World Trade Center bonds that don’t have debt obligation priority over the general obligation bonds.

Though the debt would cost the agency tens of millions more dollars, it would provide financing for, and prevent a stoppage of, construction at 4 World Trade Center. The proposal still needs approval from the agency board and investors. [WSJ]


Related Articles

arrow_forward_ios
Melania La Rocca

Buildings commissioner talks priorities in final de Blasio years

Larry Silverstein (Credit: Getty Images, iStock)

Silverstein’s lending biz could get a boost from the weak luxury condo market

A rendering of  280 Meeker Avenue CW Realty Management CEO Cheskie Weisz (CW Realty Management)

CW Realty to bring mixed-use project to troubled Williamsburg site

 561 Greenwich Street (Credit: Google Maps)

Trinity Church to construct another Hudson Square office tower

Jerome Powell and New York City construction in October 2019 (Credit: Getty Images)

The Fed lowers rates, and once again real estate is loving it

A Victoria's Secret store in New York (Credit: Getty Images)

Victoria’s Secret sues WTC landlord amid store closures and layoffs

The architect claims the design, construction and marketing of the tower rips off the design of a tower he planned and modeled for his thesis

Lawsuit over WTC design is whittled down

The complaint claims that union officials discouraged him from investigating certain cases (Credit: iStock)

Whistleblower lawsuit accuses carpenters’ union of brushing off claims of corruption, fraud

arrow_forward_ios