Sacramento County Airport System Closes $480 Million Bond Sale

SACRAMENTO, CA. — On July 28, the Sacramento County Airport System closed $480,050,000 in tax exempt revenue bonds to finance a significant portion of The Big Build Project.

The assortment of bonds - Senior Revenue Bonds (Series 2009A and 2009B) and Subordinate PFC/Grant Revenue Bonds (Series 2009C and 2009D) - will fund construction of facilities associated with The Big Build that is scheduled for completion in late 2011.

“We are pleased that the bond sale went exactly as expected,” said Susan Peters, Chair of the Sacramento County Board of Supervisors. “The resulting funds will provide capital to finance a major

ity of The Big Build Project and regional investors will be able to see their investment take shape as their bonds mature.”

The bond sale was popular with retail investors with minimum purchase price for retail buyers of $5,000.   Over $120 million in retail orders alone demonstrated the popularity of the bonds and the popularity of some maturities exceeded the number of bonds available. The popularity of the bonds among retail buyers can be attributed to the fact that the bonds are exempt from the AMT penalty. Bond maturities range from 2010 to 2041 and carry an average interest rate of 5.8%. An underwriting team comprised of J.P Morgan, the senior underwriter; Goldman Sachs & Company; Morgan Stanley; De La Rosa & Company; and Piper Jaffray & Company completed the transaction.

“With regional investment in such a vital facility, local investors have the ability to see their dollars at work improving the community they live in as well as receiving financial rewards,” said Terry Schutten, Sacramento County Executive. “The Big Build is an investment in the future of the region as a whole.  This project generates much needed jobs throughout the construction period and will also enhance Sacramento International Airport’s presence as a regional economic engine and its important role in business attraction.” 

Despite a decline in passenger numbers associated with the current economic recession, Sacramento International Airport was the 41st busiest North American Airport during 2008 with nearly 10 million passengers during the calendar year. Standard and Poor’s and Moody’s both noted Sacramento County Airport System’s financial strengths such as ample debt service coverage, sufficient cash on hand and a healthy mix of carriers, tenants and revenues. 

Approximately $178 million in bonds will also be issued in 2010 to complete financing of The Big Build.

 Sacramento County Airport System is responsible for planning, developing, operating, and maintaining four of Sacramento County’s airports: Sacramento International Airport, Executive Airport, Mather Airport and Franklin Field. For more information on the County Airport System, visit www.sacairports.org.
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