Clark County, Nevada, sold $470.3 million in bonds to refund previously issued securities and finance land acquisitions for the largest airport in Las Vegas.
The county issued the bonds in two series. The Series 2024A bonds, consisting of $319.4 million, mature between 2025 and 2032, yielding between 2.66% and 3%. The Series 2024B bonds, consisting of $150.9 million, mature on July 1, 2029, and yield 2.74%. All of the bonds pay interest at 5%.
The Series 2024A bonds received a rating of Aa2 from Moody’s Investors Service, AA- from Fitch Ratings, and AA- from Kroll Bond Rating Agency. The Series 2024B bonds received a rating of Aa3 from Moody’s, AA- from Fitch, and A+ from Kroll.
“The rating reflects the airport’s large, predominantly origin and destination (O&D) market underpinned by a diverse base of air carriers and supported through a solid airline cost recovery structure,” Fitch analysts wrote.
Proceeds from the Series A issuance will refund bonds the county issued on behalf of Harry Reid International Airport in 2008 and 2014. Proceeds from the Series B bonds will reimburse the airport for 65 acres of land it acquired earlier this year that it plans to develop “at a later time,” according to the official statement accompanying the sale of the bonds.
Clark County, which includes Las Vegas, is the most populous in Nevada. The bonds are special obligations of the county, payable by airport revenue. The Series 2024B bonds are subordinate to the Series 2024A bonds, potentially explaining the difference in rating on the two issuances from Moody’s and Kroll.
BofA Securities, Inc and RBC Capital Markets, LLC served as lead underwriters on the issuances. PFM Financial Advisors LLC and Hobbs, Ong & Associates, Inc acted as municipal advisors.