The Las Vegas Convention and Visitors Authority (LVCVA) issued $150 million in bonds to expand the city’s convention center.
The authority sold the bonds in two series. The tax-exempt Series 2023A bonds, consisting of $136 million, mature between 2027 and 2049, yielding between 2.82% and 4.03%. The taxable Series 2023B bonds, consisting of $14 million, mature between 2024 and 2027, yielding between 4.85% and 5.46%. The securities received a rating of Aa3 from Moody’s Investors Service and AA- from S&P Global Ratings.
“The Aa3 rating reflects the authority’s entrenched position as the nation’s market leader for large-scale conventions and the area’s substantial tourism amenities,” according to Moody’s.
The issuance will finance the third phase of a renovation to the city’s convention center that began in 2016. The phase is estimated to cost $600 million and complete in 2025. About half of the costs will be financed by bonds proceeds, with the remainder paid for with revenue on hand. The authority anticipates the Series 2023 bonds to be the last securities issued to finance the third phrase.
The construction will expand the convention center’s West Hall, which was completed in phase two of the project in 2021. The hall added 1.4 million square feet, including 600,000 square feet of new exhibit space, to the convention center, at a total cost of $1 billion.
The bonds are special, limited obligations of the authority, secured by a lien on revenue from hotel taxes and convention center fees. LVCVA is an independent governmental entity with countywide taxing authority over resorts and hotels.
BofA Securities Inc served as underwriter on the issuance, purchasing the bonds for $164 million. The price reflected a premium of $14 million.