SLC International Airport expected to sell $875 million in airport revenue bonds
(KUTV) -- Salt Lake City International Airport is expected to sell at least $870 million of airport revenue bonds this month.
A press release Sunday stated that Salt Lake City is considering to issue approximately $875 million of tax-exempt fixed-rate airport revenue bonds. According to Investopedia, an airport revenue bond is a type of municipal bond issued by a municipality or airport authority that uses the airport's revenue to back the bond, and acts as a type of debt security to finance facilities and improvements.
Nancy Volmer, the director of public relations and marketing for Salt Lake City International Airport, told 2News that no local taxpayer money is being used; however, some federal tax dollars are being used for a TSA baggage processing facility.
The transaction is tentatively scheduled to price the week of Oct. 15 through a syndicate led by Goldman Sachs, and expected to close on or around Oct. 31.
If issued, the bonds will finance a portion of the costs of the airport's redevelopment program, which consists of the terminal redevelopment program and the north concourse program. During the initial phase of the airport's development project, Volmer stated that they were using savings money because they had no debt.
The size, timing and structure of the anticipated transaction are subjected to market conditions, since Salt Lake City and the airport reserve the right to change the timing and size of the sale to serve the interests of both parties.