IE Business Daily Business news for the Inland Empire.
Ontario International Airport has sold $103 million in airport revenue bonds and will use the proceeds to pay off debt and finance capital improvements.
Revenue will also be used to make the final payment of $23.3 million on the 2016 ownership transfer from Los Angeles World Airports to Ontario, according to a statement on the city’s website.
Capital upgrades include airfield improvements and passenger terminal upgrades.
The Series 2021 Bonds are backed by airport revenues from landing fees, terminal rent and concession fees, among sources. In the case of Ontario International, the bonds’ value has been boosted by strong cargo volume created by the pandemic, and projected passenger increases for when the pandemic is over.
“We are gratified to learn of the exceptionally strong demand for ONT Revenue Bonds,” said Councilman Alan D. Wapner, board president of the Ontario International Airport Authority, in the statement. “It also further validates that under local control the airport is operating effectively for our airline partners, customers and other stakeholders.”
Morgan Stanley & Co LLC underwrote the bonds at an interest rate of 3.6 percent.
