Featured Municipal Bond in the Market, Week of 01/30/2017: Salt Lake City Revenue Bonds (Airport) – $952 Million

This week’s featured bond comes from the State of Utah. Salt Lake City is issuing airport revenue bonds in the amount of $952 million the week of January 30, 2017. These Salt Lake City revenue bonds are scheduled to be issued in two series: Series 2017A is $754 million in airport revenue bonds that are subject to the Federal Alternative Minimum Tax, but are otherwise tax-exempt;  Series 2017B is $199 million in airport revenue bonds that are fully tax-exempt. The purposes and uses of the bond proceeds are to partially fund the Terminal Redevelopment Program and North Concourse Programs, which seek to make major changes to the Salt Lake City International Airport. The Preliminary Official Statement of this bond issue provides a useful map, giving a general overview of the planned changes:

Salt Lake City revenue bonds

The bonds are secured by a pledge of net revenues of the Salt Lake City Airport System.  No liens on property or taxing power, nor a pledge of full faith and credit exist. Further details on the purposes, redevelopment programs, security, and other matters pertaining to these Salt Lake City revenue bonds can the found in the preliminary official statement, provided by MuniOS.

As of November 2016, the Salt Lake City Metropolitan Area has an unemployment rate of 2.4%, which is 0.4% lower than the same time last year, and 2.2% lower than the national rate.

Salt Lake City revenue bondsProvided at left is a quick snapshot of financial characteristics of the Salt Lake City International Airport as of 06/30/2016, along with the medians for other large airports for 2015-2016, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness)In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages, and our employment databaseThese facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.