Denting Debt and Building Relations

March 4, 2013, Port

The Northwest Washington Port of Skagit decided to take advantage of the historically-low interest rate environment to issue bonds to refinance existing debt and provide funding for future capital projects on favourable terms.

The port, which operates three key facilities – the Skagit Regional Airport, the Bayview Business Park and the La Conner Marina – late last year issued three series of limited tax general obligation and refunding bonds, totalling $6.44m. They sold at 2.74%.

Proceeds from the first series, totalling $2.2m, will be used to refinance a portion of the port’s 2004 bonds, saving the port about $170,000 in interest payments over the next ten years.

The $2.03m in proceeds from the second series will be applied to constructing a new building and $2.21m from the third series used to acquire land and make improvements to the marina.

Commission President Bill Shuler said the timing was right for the issue. “Interest rates are about as low as they are going to get, and we have pressing capital needs to address.”

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