New Issue: Metropolitan Washington Airports sells $163.78 million refunding bonds to one investor

New York, Jan. 30 – Metropolitan Washington Airports Authority said it placed $163.78 million of airport system revenue refunding bonds, series 2015A (AMT), with a single investor.

The proceeds were used to refund $91,445,000 of the authority’s 5% airport system revenue bonds, series 2006A, due Oct. 1, 2035 and $91 million of the authority’s 5% airport system revenue bonds, series 2006B, due Oct. 1, 2036.

Proceeds were also used to pay the costs of issuance.

The new bonds have the same terms as the existing bonds except that the first call date has been extended to Oct. 1, 2024 from Oct. 1, 2016.

The new bonds were not publicly offered.

In a notice, the authority said it received an unsolicited proposal from the owner of the old bonds under which the owner proposed to tender the old bonds to the authority and buy a smaller principal amount of the new bonds.

The transaction results in debt service savings to the authority.

As a result of the transaction, the sinking fund provision for the bonds from the series 2006A issue due Oct. 1, 2035 that still remain outstanding is adjusted so that required redemption amounts are reduced so that $3,215,000 will be redeemed on Oct. 1, 2034 and the remaining $56,285,000 will be redeemed at maturity on Oct. 1, 2035.

Similarly, the sinking fund is adjusted for the remaining series 2006B bonds due Oct. 1, 2036 so that $41.83 million will be redeemed on Oct. 1, 2034, a further $71,435,000 on Oct. 1, 2035 and the final $75,005,000 at maturity on Oct. 1, 2036.

The Metropolitan Washington Airports Authority operates Washington Dulles International and Washington National airports and is based in Washington, D.C.

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