Jeff Coyle, 210-207-7910
Laura Mayes, 210-207-1337
SAN ANTONIO (November 22, 2019) – This week, the City of San Antonio sold a total of $178 million in Airport System Revenue Refunding Bonds which saved the City more than $32 million, providing for capacity to fund additional capital projects at the Airport.
The 2019 Airport Bonds received strong ratings from the three major rating agencies.
“The rating agencies acknowledged the San Antonio Airport System’s strong momentum, commitment to expanding air service options and the strength of San Antonio’s diverse economy. By saving millions of dollars in interest costs we can reinvest directly into capital projects for our airport system.” said City Manager Erik Walsh.
The 2019 Airport Refunding Bonds were rated “A+”, “A1”, and “A+” by Fitch, Moody’s, and Standard and Poor’s respectively and the 2019 PFC Refunding Bonds were rated “A”, “A2”, and “A” by Fitch, Moody’s, and S&P, respectively, prior to the bond sale.
Moody’s noted in their rating assessment reflects the overall strength of the airport's service area with a large, stable and diverse economy; mixed set of air carriers with some concentration by Southwest Airlines; and improving financial metrics given the recent trend of strong enplanement growth.
Standard & Poor’s noted that their ratings reflect a strong market position, extremely strong service area economic fundamentals, low industry risk, and very strong management and governance.
The sale included a total of $178 million in refunding bonds for interest cost savings, which sold in four different series of bonds to refund previously issued Airport Bonds. This sale earned the City approximately $32 million in savings in today’s dollars.
The interest cost savings that resulted from this bond sale will allow for additional construction improvements to airfields, terminals and other airport facilities at both San Antonio International Airport and Stinson Municipal Airport.
FHN Financial Municipal Advisors and Hilltop Securities Inc., served as Co-Financial Advisors. McCall Parkhurst & Horton L.L.P. and LM Tatum, PLLC. served as Co-Bond Counsel.