Los Angeles Harbor selling most bonds in 5 years

[CHICAGO] The Los Angeles Harbor Department, which runs the busiest container port in the US, is selling about US$340 million of debt, the most since 2009, after the risk of a crippling strike was reduced by a tentative agreement on healthcare costs between longshoremen and shippers.

The sale this week will help refinance debt and upgrade facilities at the Port of Los Angeles, according to bond documents.

The provisional healthcare deal between the International Longshore and Warehouse Union, representing 20,000 dockworkers, and shippers in the Pacific Maritime Association was announced in a joint statement on Aug 26. Negotiations continue on a new contract covering 29 ports in California, Oregon and Washington.