SAN DIEGO – February 19, 2014 – Completion of a major bond sale for construction of a Rental Car Center and related improvements on the north side of San Diego International Airport (SAN) was recently announced by the San Diego County Regional Airport Authority. The bonds are secured by future Customer Facility Charge (CFC) revenue from customers who will use the Rental Car Center, which is scheduled to open in January 2016.
It is the largest stand-alone CFC-backed bond deal ever and the first issued in California. The Airport Authority scheduled pricing for the bond sale in early February to take advantage of favorable market flows and lower rates, resulting in the bond offering being extremely well received. The All-in True Interest Cost for the entire transaction was 5.49%.
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 the bonds. Moody’s Investors Services and Standard & Poor’s Ratings Services rated the bonds A3 (Stable) and A- (Stable), respectively.
The bond sale was comprised of $305.3 million in Senior Special Facility Revenue Bonds, sold on February 5, 2014, with an expected closing date of February 2, 2014. The bonds included:
- $29,390,000 of Series 2014A Bonds (Tax Exempt Non-AMT)
- $275,895,000 of Series 2014B Bonds (Federally Taxable)
“With this favorable bond sale, all anticipated bond funding for the future Rental Car Center is now complete,” said Thella F. Bowens, President/CEO of the Airport Authority. “We worked hard to position the Airport Authority financially to receive the best rates possible. The very attractive rates on these bonds are substantially lower than forecast. The airport’s first Rental Car Center will greatly enhance the experience of those using San Diego International Airport.”
For more information on the Rental Car Center and other north side improvements at San Diego International Airport, visit: http://www.san.org/sdcraa/airport_initiatives/north_side/default.aspx.