The Airport Authority recently completed a major bond sale totaling approximately $700 million. In doing so, the Airport Authority obtained a record-low interest rate that is estimated to save more than $100 million in financing costs over the next 20 years.
Approximately $280 million of the bonds will pay for current and future construction projects that will help capture and store stormwater runoff, provide a new facilities maintenance building, and deliver new and rehabilitated airfield pavement, among other projects.
The remainder of the bond proceeds will be used to refinance existing debt that has been in place since 2010. The bonds will not cover the proposed Airport Development Plan, which envisions the replacement of Terminal 1 and related airfield and transportation improvements.
Demand was exceedingly strong – investors put in over $5 billion worth of orders for the bonds which contributed to an Authority record-low interest cost. Prior to the issuance, Fitch Ratings upgraded the Airport Authority’s senior bonds to AA- and A+.
“This incredibly successful bond sale reflects the strong financial position of the Airport Authority and our long track record of good fiscal stewardship,” said Kim Becker, the Airport Authority’s President/CEO. “We have repeatedly delivered excellent financial results and have brought our capital development projects in on time and under budget, and investors have noticed.
“The upgrade reflects (SAN’s) consistently strong operational and financial performance, which Fitch expects will continue through the scope and planned financings of (SAN’s) long-term Airport Development Plan (ADP),” according to a Fitch news release.
ABOUT THE AIRPORT
San Diego International Airport (SAN) offers nonstop service to about 70 destinations in the continental U.S., Europe, Asia, Mexico and Canada. In operation since 1928, the airport celebrated more than 90 years of service to the San Diego region in 2018. The San Diego County Regional Airport Authority has managed the airport since 2003. The Airport Authority plans for and provides air transportation services to the region with safe, effective facilities that exceed customer expectations
# # #