Port of Corpus Christi Bond Sale Raises $216.2 Million for Ship Channel Dredging Project

us oil exports
The oil tanker Theo T departs the port of Corpus Christi with the first export cargo of US crude oil after the United States government repealed a 40-year ban on the export of crude oil in December 2015. Picture taken December 31, 2015. Photo credit: Port of Corpus Christi

The Port of Corpus Christi has sold over $216 million in bonds to help finance the deepening and widening of the Corpus Christi Ship Channel.

Currently at a depth of 45 feet, the Ship Channel will be dredged to 54 feet to accommodate Suezmax and larger vessels, and widened to 530 feet to allow for two-way traffic flows, positioning the Port of Corpus Christi as the deepest draft navigation Port in the US Gulf.

The improvements are designed to handle the growing export volumes of US crude and natural gas, which have propelled the Port of Corpus Christi to what is now the largest energy export Port in the United States by volume.

The Port’s Senior Lien Revenue Bond 2018 Series pricing follows strong ratings reiterations received from both Moody’s Investors Service and S&P Global Ratings. Moody’s assigned an A1 Rating to the Port’s newly issued debt, while upgrading the Port’s existing debt from A1 to Aa3. S&P assigned a rating of A+ to the Port’s newly issued debt, while reaffirming the same rating for the existing debt.

“We are pleased with the level of interest the institutional investment community demonstrated for both series of our bonds.” said Sean Strawbridge, CEO of the Port of Corpus Christi. “This round of funding will help the Port of Corpus Christi further progress our ambitious yet achievable capital investment program designed to increase exports of US produced energy to our allies and trading partners around the world.”

The $335 million Corpus Christi Ship Channel project has so far received over $138 million in Federal and Port contributed funds, with dredging operations scheduled to commence later this year.