Aviation Authority successfully places new bonds
February 4, 2019
Strong Airport Performance Improves Terms of Debt
The Charleston County Aviation Authority announced that $64.7 million in thirty-year bonds were successfully placed this week. Net proceeds from the sale will be used to support an $88 million, 3,000-space parking garage.
The airport saw another year of record-setting passenger volume in 2018. Over 4.4 million passengers traveled through the airport, an increase of 12% from 2017.
In January, credit rating agencies assigned favorable ratings to the Airport Revenue Bonds. Moody’s gave the new bonds an A1, while Standard & Poor’s rated them A+.
“The rating agencies applauded the airport’s impressive growth trend, stable leadership and solid financial management, and the market responded favorably this week,” said Sam Howell, the Authority’s bond attorney and a partner with Howell Linkous and Nettles, LLC. “Investor demand exceeded our expectations and resulted in improved financing terms.”
The aggregate principal amount was reduced from $72 million to 64.7 million, partially driven by a larger expected premium from investors. The interest rate improved to 3.83% at closing.
