Alaska International Airport System has successful bonds sale

(JUNEAU, Alaska) – The Alaska International Airport System (AIAS) has successfully completed the refinancing of its $50 million 2006C Alternative Minimum Tax Variable Rate Demand Revenue Refunding Bonds.

The AIAS 2009A bonds were initially marketed at approximately 1.5 percent (including liquidity facility costs) and reset weekly. The bonds were marketed by Merrill Lynch & Co. The successful refinancing resulted from the joint efforts of the State of Alaska Department of Transportation and Public Facilities (DOT&PF), AIAS, Department of Revenue, Attorneys General’s Office, Department of Revenue Financial Advisor – Scott Balice Strategies, and Bond Counsel – K&L Gates.

The AIAS 2009A bonds received ratings of AAA/VMIG 1 by Moody’s Investor Service and AA+/F1 by Fitch Ratings. Long-term rating of AIAS outstanding parity bond debt of AA3 by Moody’s Investor Services and AA- by Fitch have also been affirmed with a stable outlook.

“We are grateful for this expression of confidence in our Alaska International Airport System, stated Christine Klein, Deputy Commissioner of Aviation for DOT&PF. “Very few airports in the country have had such success with their bonds the past four months. AIAS is committed to doing whatever is necessary to ensure that we remain competitive and efficient as a system.”

The bonds were originally issued in 2006 to help fund AIAS capital improvement projects, including airport terminal redevelopment and improvement projects in Anchorage and Fairbanks.

The AIAS is an enterprise fund of the DOT&PF and is comprised of the Ted Stevens Anchorage International Airport and the Fairbanks International Airport.