Virginia Port Authority bonds finance upfront rent payment

By Scott Sowers

Excerpt from the article:

(August 11, 2025) The Virginia Port Authority is scheduled to come to market on Wednesday with $251.78 million of revenue bonds, with most of the proceeds going towards an upfront rent payment. 

"It is unusual for an issuer to finance upfront rent, but issuers have done it," said John Mousseau, vice-chairman and CIO of Cumberland Advisors. "For long-dated projects like ports, it probably helps getting better lease deals, thus it becomes a capital expense, not an operating expense." 

The Port Facilities Revenue Bonds Series 2025 will land with an A1 rating from Moody's and an A from S&P Global Ratings. Both agencies assign stable outlooks. The bonds aren't subject to alternative minimum tax.

"I think the deal will get a great reception from the market," said Mousseau. The "A" rating should afford some extra yield in a AAA state where it's hard to find incremental yield away from healthcare."

Click here to read the full article on the The Bond Buyer website. 

John R. Mousseau, CFA
Vice Chairman | Chief Investment Officer
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