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St. Louis Issues $287 Million in Airport Bonds

By Munichain News Desk
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St. Louis, Missouri, sold $287.4 million in bonds to finance improvements to its international airport.

The city issued $279.6 million in tax-exempt bonds and $7.8 million in taxable bonds. The tax-exempt bonds mature between 2032 and 2054, yielding between 3.38% and 4.38%. The taxable bonds mature in 2054 and yield 4.67%. The securities received an underlying rating of A from Fitch Ratings and A2 from Moody’s Investors Service, and an insured rating of A1 from Moody’s.

The rating reflects the airport’s midsized traffic base with moderate carrier concentration, Fitch analysts wrote. ”Sound financial operations resulting from the airport’s hybrid airline agreement’s cost recovery mechanisms further support the rating,” they added.

The city will use the bond proceeds to finance upgrades at St. Louis Lambert International Airport, including the demolition of old buildings and their replacement with new ones. The airport expects that the “2024 projects” will cost $327.1 million, of which bonds will fund $256.8 million, according to the official statement accompanying the sale of the bonds.

The bonds are limited obligations of the city of St. Louis, payable by net airport revenue. The airport recorded $87.8 million in net revenue last fiscal year.

Goldman Sachs & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $310.8 million. The price reflected a premium of $24.7 million and a discount of $1.3 million. Siebert Williams Shank & Co, LLC and PFM Financial Advisors LLC acted as co-municipal advisors.


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