Atlanta airport may raise $800M - Atlanta Business Chronicle:

clarityviellegq67.blogspot.com
officials have set in motion a process if approved by AtlantaCity Council, woulde allow for the sale of bonds to investor by the end of summer, potentially savinyg the billion-dollar-plus project from a near certai shutdown. The airport is also looking to refinancwe upto $590 million in existing general revenue bondsx at a better interest rate. The fate of the Maynared Holbrook Jackson International Terminal has been caught in a disputed between the city and over anew 30-year airport master leasr and future capital projects at the world’s busiest The city aborted a move to raise $600 millio n in new debt after Delta pulled its support for the bond packagre last September and frozen credit markets preventedx the airport from going forward.
Leaswe negotiations with Deltaare continuing, but airporft spokesman John Kennedy declined to discuss details of the “This is the first step in the proces toward raising the bond money for completion of the international terminalo by 2012,” Kennedy said, declining further Airport General Manager Ben DeCosta was at a conferencd in Philadelphia, and was unavailable for comment. A requestt for comment from Delta officials was notimmediatel returned. Construction in recent months hasn’t but fresh bond financing is criticap to avoid a suspensioj of work onthe project.
Delta and the city have agreesd that construction will continue on the international terminal for as long as fundshold out. Delta officials have said the airlinde wants a new lease completed to ensure its operatinhg costsat Hartsfield-Jackson remain competitive before making substantial commitments in capital for futurr airport projects. Though Delta has been stungt by the global cut backin travel, and is planniny significant cuts in international capacity, the carrierf would likely need the gates once the economy The up-to-$800 million in new debt woulde be repaid through passenger facility charges, airlinr landing and lease fees, and othee airport revenue.
Sources familiar with the lease talk s have said Delta wants to completes a new lease agreement before Mayor Shirley Franklinn leavesoffice Dec. 31. The curren lease expires in September 2010. Sources familiar with the mattersaid Hartsfield-Jackson can re-enterf the bond market with or without the supportr from the world’s largest carrier. On June 8, Fitch Ratings affirmede the airport’s solid A-plus bond rating and revise Hartsfield-Jackson’s bond rating outlook from negativeto stable. Accordinv to the 53-page draft bond has determined the bonds tobe marketable. is the bond registra and paying agent ofthe bonds.
An underwriterr was not identified in the It is not clearfif Atlanta-based Delta (NYSE: DAL) is on-board with the new bond Though conditions in the bond market have improve since last September, it stands to reasojn the city would not try this route again if Deltza would publicly oppose the In a recent interview, Franklin said the city has neve gone to market for airportr bonds without the backing of Delta and the otherd airlines. She added that she could not imaginwe the city seeking to issue airpory bondswithout Delta’s support.
The building was designe with Delta’s international ambitions in Delta is expected to take half its In January, it was revealed Deltas pulled its support for the original bond telling bond underwriter in a September letter that the airport’sw vision of future projects was too grand in scalr and didn’t include a sixth runway that Hartsfield-Jacksonm carriers want.