Featured Municipal Bond in the Market, Week of 05/15/2017: City of Charlotte – Charlotte Douglas International Airport – $312 Million
This week’s featured bond comes from the State of North Carolina. The City of Charlotte is issuing revenue bonds for the Charlotte Douglas International Airport is issuing general obligation bonds bonds in the amount of $312 million the week of May 15, 2017. The bonds consist of three series. Series 2017A consists of $173 million in tax-exempt revenue bonds, Series 2017B consists of $20 million in revenue bonds, for which the interest paid are exempt from gross income for federal income tax purposes, but may be subject to the alternative minimum tax, and may be considered taxable if the bonds are held by a person who is a “substantial user” of the facilities financed or refinanced by the bond proceeds. Series 2017C are $119 million is tax-exempt revenue bonds that will primarily be used to refund airport revenue bonds previously issued by the city in 2007-2009, and 2011. Series 2017A and Series 2017B proceeds will be used to partially fund the following:
- Terminal Complex Improvements, such as an expansion of Concourse A and expansion of the terminal lobby
- Airfield Improvements, such as ramp expansion
- Ground Transportation Projects, such as expansion and improvements to long term parking
- Airport Services and Facilities Projects, such as construction of a vehicle maintenance facility, and extension of Little Rock Road to enable better airport access from I-85.
- “Other” Projects, such as construction of a new concessions distribution warehouse
Security on these revenue bonds is a pledge of net revenues of Charlotte Douglas International Airport. Further details on the purposes, security, tax status, and other matters pertaining to these bonds can the found in the preliminary official statement, provided by MuniOS.
Charlotte Douglas International Airport serves as a major airport for the Charlotte-Concord-Gastonia, NC-SC Metropolitan Statistical Area. As of March 2017, the Charlotte MSA has an unemployment rate of 4.4%, which is 0.1% lower than the national rate for March, and 0.1% lower than at the same time in 2016. The chart below shows the changes in the Charlotte MSA, State of North Carolina, and U.S. unemployment rates for the past ten years. MuniNet provides this data and more, easily accessible, for all 50 states and each Metropolitan Statistical Area in the country, in our Employment Database.
Provided at left is a quick snapshot of financial characteristics of the Charlotte Douglas International Airport, as of 06/30/2016, along with the medians for other large U.S. 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 database.
These 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.
These 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.