Featured Municipal Bond Issue, Week of March 19th, 2018: Los Angeles International Airport Revenue Bonds – $230 Million

The Department of Airports of the City of Los Angeles is issuing $230 million in Los Angeles International Airport (LAX) revenue bonds the week of March 19, 2018. The bonds are being issued as a single series, 2018 Series B. Interest on the bonds is excluded from gross income for federal income tax purposes.

Bond proceeds will be used to refund and defease a portion of the Department’s outstanding revenue bonds previously issued in 2008, in order to realize debt service savings. Security for the bonds is a pledge and first lien on Net Pledged Revenues, which includes certain income and revenue from LAX, but not from other airports within the Department. Details on the purposes, tax-status, security, as well as other matters pertaining to these Los Angeles International Airport revenue bonds can be found in the preliminary official statement, available on MuniOS.

The Los Angeles International Airport is the major airport for the Los Angeles-Long Beach-Anaheim, CA Metropolitan Area. The Los Angeles metro area had an unemployment rate as of December 2017 of 3.9%, 0.2% lower than the national rate for December, and 1.0% from the same time the previous year. The chart below shows a ten-year monthly tracking of the unemployment rate for the Los Angeles metro area, the State of California, and the United States. More Los Angeles metro data can be found here, and similar information is available on every state and metro area in the U.S. in our Employment Database.

Provided at left (click to expand) is a quick snapshot of financial characteristics of the Los Angeles International Airport as of 06/30/2017, compared with the 2016-2017 medians for other Large Airports, 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.

by Jeffrey L Garceau