Hurricane Beryl Fails to Halt Galveston’s Bond Sale

Hurricane Beryl’s Impact Doesn’t Halt Galveston Wharves Bond Sale
Despite Hurricane Beryl’s recent impact on Texas, Galveston Wharves is moving forward with its $160 million revenue bond sale scheduled for Tuesday. The port experienced minor damage and power outages after Beryl, which downgraded to a Category 1 hurricane upon making landfall 100 miles south in Matagorda. Remarkably, a Royal Caribbean cruise ship departed from Galveston a day post-storm, showcasing the port’s resilience.
Galveston Wharves, North America’s fourth-largest cruise ship passenger port, anticipates resuming full operations by Thursday. S&P Global Ratings recently upgraded the port’s bonds to A from A-minus, reflecting increased cruise activity and revenue growth. Fitch Ratings also revised its outlook to positive.
The port’s cruise passenger numbers rebounded dramatically, hitting a record 1.49 million in 2023, compared to 225,643 in 2020 during the pandemic. The bond proceeds will fund a new cruise complex at Pier 16. The deal includes Series A and B bonds with maturities from 2026 to 2044, supported by co-managers and advisors such as Piper Sandler, Hilltop Securities, and Bracewell.
Hurricane Beryl caused widespread power outages and flooding in the Houston area, prompting President Joe Biden to declare a major disaster, allowing for federal reimbursement of recovery costs. Moody’s Ratings highlighted Texas’s economic vulnerability to hurricanes, with significant portions of its GDP at risk. Colorado State University’s updated forecast predicts an active hurricane season with 25 named storms and 12 hurricanes.