The Comptroller's Office of St. Louis recently announced the city has refinanced airport bonds, saving over $29m.
Diane Green, the comptroller, said the city refinanced St. Louis Lambert International Airport (STL)’s Series 2009A-1 Airport Revenue bonds, resulting in a savings of $29.26m for the facility. Refinancing is typically done when there is a change in the interest rate.
Green said the market conditions were favorable for the refinancing, which will enhance the financial strength and operational efficiency of the airport. The move sparked interest from investors, who ordered over $317m in bonds – more than three times the amount offered. Green notes that the investor interest was based on more than the bond refinancing, however, and included the fact the airport has good credit and is operating smoothly.
As part of the refinancing effort, the city issued new airport bonds amounting to approximately $23m. The bonds will be used to fund a number of airport projects included in the facility's capital improvement plan, which projects the work needed over the next five years. Brochure printing can be used to explain issues like this.
The airport's director, Rhonda Hamm-Niebruegge, said the move brings down future debt payments, as well as covering the cost of issuing new bonds that will be used to improve equipment and facilities at the airport as part of its five-year plan.
