The Galveston Wharves has successfully priced $156,835,000 in revenue bonds for the construction of the port’s fourth cruise terminal, with the sale generating more than $1.8 billion in orders from investors, according to a press release.

The port said that interest rates were reduced due to strong demand, resulting in approximately $2 million in savings on principal and interest for the port.

Rodger Rees, Galveston Wharves port director and CEO, said: “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.”

Co-managers for the financing are Hilltop Securities and Piper Sandler companies.

Construction is underway to transform an existing cargo warehouse into a 165,000-square-foot cruise terminal at Pier 16. The $96 million project will feature marine modifications to the pier, two passenger boarding bridges and ground transportation areas.

Additionally, the port plans to develop a $55 million parking garage with space for approximately 1,700 vehicles. The total estimated project cost of $151 million will be financed through port cash reserves and revenue bonds.

Set to open in November 2025, the new cruise terminal will homeport MSC Cruises’ Seascape. The Galveston Wharves and MSC Cruises finalized an operating agreement for the complex in early 2024.

Under the 20-year agreement, with four optional five-year extensions, MSC will establish a fixed cruise schedule starting in late 2025, when the terminal opens. The port retains the right to negotiate with other cruise lines for terminal use, subject to availability.