McGuireWoods served as bond counsel to the Virginia Port Authority (VPA) in its first port revenue bond issue since 2016, an innovative $248.7 million financing that was named Southeast Deal of the Year by The Bond Buyer, the newspaper of public finance.
The award-winning transaction enabled a first-of-its-kind lease amendment at Virginia International Gateway (VIG), securing a fixed-price option for the VPA to purchase the terminal in 2065. VPA administers the state’s public marine terminals, including Norfolk International Terminals, Newport News Marine Terminal, Virginia Inland Port, Portsmouth Marine Terminal and Richmond Marine Terminal. The VIG terminal, a leader in automation and advanced technology, is a critical asset in the port’s continued growth and success.
The financing also funded a $335 million upfront rent payment, nullified all outstanding port revenue bonds and equipment leases, and allowed the VPA to avoid an 8% ticking fee, all while providing enhanced operational control and long-term certainty for the Port of Virginia.
McGuireWoods’ public finance team provided comprehensive legal guidance throughout the structuring, negotiation and execution of the $248.7 million in Port Facilities Revenue Bonds. The team, led by partners T.W. Bruno and Robert Kaplan, navigated complex legal and financial issues to bring the deal to fruition.
“We were honored support the Virginia Port Authority in this impactful transaction,” said Bruno, co-leader of McGuireWoods’ Public Finance Practice Group. “This deal not only strengthens the port’s position as a leader in global trade but also delivers significant long-term value to the Commonwealth of Virginia.”
McGuireWoods holds a Band 1 nationwide ranking in public finance from Chambers USA, the highest awarded by the respected legal guide. The firm’s public finance lawyers have earned national recognition for their work in tax-exempt bond and infrastructure finance transactions and are leaders in strategies such as public-private partnerships; special revenue, tax and assessment pledges and lease financings, especially those with complicated federal tax and constitutional considerations.