← Back to Latest News

Pennsylvania Authority Sells $415 Mln in Bonds for Pittsburgh Airport

By Munichain News Desk

The Allegheny County Airport Authority issued $415 million in bonds to finance terminal renovations at Pittsburgh International Airport (PIT).

The authority sold the bonds in three series. All of the bonds mature between 2026 and 2053. The Series 2023A bonds, consisting of $347 million and subject to alternative minimum tax, yield between 4.26% and 5.06%; the tax-exempt Series 2023B bonds, consisting of $27 million, yield between 3.71% and 4.84%; the federally taxable Series 2023C bonds, consisting of $41 million, yield between 5.257% and 6.22%. The securities received an insured rating of AA from S&P Global Ratings, AA+ from Kroll Bond Rating Agency, and A1 from Moody’s Investors Service.

The rating reflects the airport’s “steady post-pandemic recovery in passenger traffic, revenue and destinations served,” according to Kroll.

PIT is the latest airport to turn to the bond markets after receiving funding from the bipartisan infrastructure law. The legislation, which President Joe Biden signed in 2021, provides $25 billion for aviation infrastructure, including $5 billion specifically for terminals. PIT received a $20 million terminal grant from the bill earlier this year.

PIT is about halfway through a $1.5 billion terminal modernization program. The project will consolidate the airport’s multiple terminals into one, reducing passenger travel time and delays. Remaining construction is expected to finish by early 2025, according to the official statement accompanying the sale of the bonds.

The bonds are limited obligations of the authority, payable by airport revenue.

Citigroup Global Markets Inc and PNC Capital Markets LLC served as lead underwriters on the issuance, purchasing the bonds for $428 million. The price reflected a premium of $13 million.

Subscribe to the Munichain Newsletter

The latest municipal bond market news and insights delivered to your inbox weekly.