THE PORT OF VIRGINIA

News Release
May 21, 2009

Contact:
Joe Harris, Media/Public Relations Manager
Tel: (757) 683-2137 / (800) 446-8098
Cell: (757) 617-0006
Fax: (757) 683-2897
jharris@portofvirginia.com

Greg Edwards, Director of External Affairs
Tel: (757) 683-2110 / (800) 446-8098
Cell: (757) 617-0852
gedwards@portofvirginia.com

Virginia Port Authority
Issues One-Year 
Bond Anticipation Notes 

NORFOLK, VA – The Virginia Port Authority on Tuesday, May, 19, successfully issued a one-year bond anticipation note [BAN] to refinance a note coming due on July 1; the VPA will save several hundred thousand dollars in interest through this action.

Rodney Oliver, the VPA’s chief financial officer, said the note is a low-interest, interim financing measure used in anticipation of the long-term $65 million bond sale scheduled for 2010. The proceeds from the bonds are being used to finance ongoing capital construction projects at the three state-owned marine cargo terminals.

The note was priced at a very low interest rate -- less than .5 percent.

“The market interest in the BAN was strong given their very low risk as indicated by the low interest rate,” Oliver said. “This is the most appropriate and cost-effective method to get us to the long-term bond sale in we plan to have next year; the savings will be close to $900,000.”

Morgan Stanley was the lead underwriter for the note, which carried the highest possible short-term credit ratings from rating agencies Moody’s [MIG-1] and Standard & Poor’s [SP-1+].

As the bond rating agencies were evaluating the health of the VPA’s short-term bonds, they were also asked to assess the VPA’s long-term bonds. “While there were some changes to our ratings that come as a direct result of the unstable economy, the VPA still holds the highest bond rating of any major port on the East Coast,” Oliver said.

The ratings are as follows:

-- S&P affirmed an A+ rating with a stable outlook.

-- Fitch downgraded the Authority’s rating from A+ to A with a stable outlook.

-- Moody’s affirmed a Aa3 rating but changed its outlook from stable to negative.