Funding for the Big Build got a big boost in late July when the Sacramento County Airport System closed $480,050,000 in tax exempt revenue bonds to finance a significant portion of project.
The assortment of bonds, Senior Revenue Bonds (Series 2009A and 2009B) and Subordinate PFC/Grant Revenue Bonds (Series 2009C and 2009D), will fund construction of the new facilities.
The bond sale was popular with retail investors with minimum purchase price for retail buyers of $5,000. Over $120 million in retail orders alone demonstrated the popularity of the bonds and the popularity of some maturities exceeded the number of bonds available, the airport says. An underwriting team comprised of J.P Morgan, the senior underwriter; Goldman Sachs & Company; Morgan Stanley; De La Rosa & Company; and Piper Jaffray & Company completed the transaction.
“With regional investment in such a vital facility, local investors have the ability to see their dollars at work improving the community they live in as well as receiving financial rewards,” says Terry Schutten, Sacramento County executive. “The Big Build is an investment in the future of the region as a whole. This project generates much needed jobs throughout the construction period and will also enhance Sacramento International Airport’s presence as a regional economic engine and its important role in business attraction.”
Despite a decline in passenger numbers associated with the current economic recession, Sacramento International Airport was the 41st busiest North American Airport during 2008 with nearly 10 million passengers during the calendar year. Standard and Poor’s and Moody’s both noted Sacramento County Airport System’s financial strengths such as ample debt service coverage, sufficient cash on hand and a healthy mix of carriers, tenants and revenues.
Approximately $178 million in bonds will also be issued in 2010 to complete financing of the Big Build.
The Sacramento International Airport Big Build Project Team
Owner: County of Sacramento
Landside Building Contractor: Austin Commercial/Walsh Construction, Phoenix (joint venture)
Airside Building Contractor: Turner Construction, Sacramento, in association with Flatiron Construction Corp., Benicia, and Teichert Construction, Sacramento
Architect of Record: Corgan Associates, Dallas
Associate Architect: Fentress Architects, San Jose
Project Management Team: AECOM, Sacramento, and Pasley Management Group, Sacramento
Steel Contractor: Schuff Steel Co., Phoenix
Mechanical Engineering Contractor: ACCO Engineered Systems, Glendale