DFW International Airport completed the sale of $375 million in fixed rate joint revenue bonds for its $2.6B Capital Development Program recently, netting the airport some of the lowest interest rates in its history. The airport has now successfully sold more than $1.2 billion in bonds since Sept. 11, keeping construction of the new international terminal and Automated People Mover (APM) on track to open in early 2005. Proceeds of the series 2002 bonds will be used to finance a portion of DFW’s $2.6 billion capital plan, refund $52 million of existing DFW debt, fund reserve accounts and pay issuance- related costs.
More than $950 million of orders were placed for the $375 million in bonds, with some issues oversubscribed four times. DFW received a true interest rate of 5.10 percent and active coupon rates of 3.0-5.5 percent. The airport plans to sell $125 million variable joint revenue auction-rate bonds next week.
"Clearly we are gratified by the enthusiastic response of the offering and extremely attractive interest rates we received," said Vernon Evans, chief financial officer of DFW, shortly after the sale in New York City. "It’s clear the market has a positive perception of DFW, and the favorable market rates are terrific advantages for the Airport."
Last December, the airport completed the largest bond sale in its history, selling $650 million of joint revenue and refunding bonds. The sale was the largest of any airport post Sept. 11. The effective interest rate then was 5.69-percent, one of the lowest rates in the history of the airport.
Located halfway between the cities of Dallas and Fort Worth, TX, DFW International Airport is the world’s third busiest, offering nearly 2,000 flights per day and serving 55 million passengers a year. DFW International Airport provides non-stop service to 129 domestic and 30 international destinations worldwide.
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