Major bond sale for San Diego International Airport receives significantly low borrowing cost

SAN DIEGO, 2013-01-31 — /travelprnews.com/ — Completion of a major bond sale for San Diego International Airport (SDIA) was recently announced by the San Diego County Regional Airport Authority. $379.6 million in Senior Airport Revenue Bonds were issued. Proceeds will provide the remaining debt funding necessary to complete The Green Build Terminal 2 expansion program and a variety of projects in the FY 2013 – FY 2017 Capital Improvement Program (CIP) for SDIA.

The Airport Authority was able to secure a significantly low all-in borrowing cost of 3.92% for the bonds, which is a lower long-term rate than any other airport in the nation in the same rating class. Per Vernon Evans, Treasurer and CFO of the Airport Authority, it is estimated that accessing the market at such a favorable interest rate will save the Airport Authority more than $71 million in reduced debt service cost over the 30-year term of the bonds, compared to forecast. The bond sale proved very popular, with strong demand from both retail and institutional investors. $58 million of the bonds were sold to retail investors, and 69 different institutional investors participated in the sale.

“Such favorable terms for this bond sale is good news for the Airport Authority and the region, and is the result of strong financial policies and management strategies,” said Thella F. Bowens, President and CEO of the Airport Authority. “Completion of bond funding strengthens our financial plan for The Green Build and our CIP, which benefit the entire region through jobs and economic investment.”

The sale included $107.3 million of Series 2013A (Non-AMT) bonds and $272.3 million of Series 2013B (AMT) bonds.

The bond sale’s favorable circumstances were due to several factors, including the Airport Authority’s careful timing of market entry for the sale, pricing during a time when rates were more attractive, and strong credit ratings for Airport Authority bonds from the nation’s top three ratings agencies: Fitch Ratings, Moody’s Investor Services and Standard & Poor’s.

The Green Build will enhance customer service with 10 new gates, expanded passenger waiting areas, a dual-level roadway with curbside check-in, additional security lanes, expanded concessions, and airfield improvements.

Contact: Katie Jones Steve Shultz
619.400.2884/kjones@san.org 619.400.2881/sshultz@san.org

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