Galveston sells $157m bonds at 5% to finance fourth cruise terminal

The sale generated more than $1.8b in orders from investors.

According to Galveston Wharves, the strong demand enabled a lower interest rate, which saved the port approximately $2m in total principal and interest.

'Investors recognized the port’s financial resiliency, quick recovery after Hurricane Beryl on July 8, growth trajectory, strong management, recent rating upgrade from Standard & Poor’s and a positive outlook from Fitch,' Port Director/CEO Rodger Rees said.

New cruise terminal and parking garage

Proceeds will go to converting a cargo warehouse into a 165,000-square-foot cruise terminal at Pier 16, a $96m project including pier work, two passenger boarding bridges and ground transportation areas, and to building a $55m parking garage for approximately 1,700 vehicles.

Construction has already begun, with the facility scheduled to open in November 2025 to homeport MSC Seascape. MSC Cruises has priority berthing under a long-term agreement. The port can negotiate with other cruise lines to use the terminal based on availability.

The bonds were rated A by S&P and A- by Fitch Ratings. Piper Sandler and Hilltop Securities co-managed the July 25 offering.