PORT ANGELES — The Port should borrow money now for its Boat Haven project to take advantage of historically low interest rates, financial consultant Allan Dashen told Port commissioners Monday.
The commissioners unanimously approved Dashen’s recommendation to use Seattle Northwest Securities Corp. as underwriter for the estimated $5.5 million bond issue.
The bonds will pay for improvements to the more than 40-year-old Port Angeles Boat Haven on the south side of the harbor.
According to a schedule presented by Dashen, the Port will apply for a bond rating and bond insurance during the week of Feb. 27.
Port commissioners will adopt a bond resolution at their March 13 meeting, Dashen said.
Then the underwriter will negotiate an interest rate and sell the bonds on March 20 with the sale closing April 11, he said.
Local buyers
As with the Port’s prior bond issue, the bonds will be advertised for sale to local buyers, Port Finance Director Bill James said.
A bond rating and bond insurance, which is for the buyer’s benefit, also will be necessary, Dashen said.
The Port’s bond rating from Moody’s Investor Service, the independent credit rating adviser, is A3, which is appropriate for this size of a public port district, he said.
AAA is the highest rating, and A3 is the lowest in the “A” series.
According to Moody’s, bonds which are rated A possess many favorable investment attributes and are considered as upper-medium-grade obligations.
The Port also should consider general obligation bonds rather than revenue bonds, Dashen said.
