Fresno Airport Successfully Completes $33.5 Million Bond Sale

FRESNO – On Aug. 6, Fresno Yosemite International Airport successfully completed the sale of Airport Refinancing Bonds, a move that is expected to save $240,000 annually and approximately $4.2 million over the life of the refinanced bonds. The savings will help the Airport offset its annual operating expenses and strengthen operating reserves.

Interim Director of Aviation Kevin Meikle said the timing of the bond refinance was carefully coordinated to coincide with positive airport trends that stimulated favorable municipal bond market rates. As a result, the $33.5 million principal balance of the old bonds was refinanced at a lower interest rate without extending the existing term.

The new bonds replaced bonds originally sold in 2000 for construction of the Airport’s concourse and other infrastructure improvements. Payments on the original bonds over the last 13 years resulted in an outstanding principal balance of approximately $33.5 million at the end of Fiscal Year 2013.

Moody’s Investors Service, Standard & Poor’s Ratings Services, and Fitch Ratings affirmed the Airport’s current investment-grade rating of Baa1, BBB, and BBB respectfully, with all three agencies reporting a stable outlook. The agencies recognized the Airport for its strong passenger growth, diverse air carrier base, a low airline operating cost structure, and the absence of need for additional debt since the existing facilities are sufficient to accommodate future growth without any major capital needs in the foreseeable future.

The bond market responded strongly and the bonds were quickly purchased by a variety of investors. All stakeholders and ultimately the end users of Fresno Yosemite will benefit from this refinancing effort for many years to come.