Chicago O'Hare International Airport to sell $1.2 billion revenue

Reuters News
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Posted: Aug 01, 2012 11:11 AM
Chicago O'Hare International Airport to sell $1.2 billion revenue

(Reuters) - Chicago O'Hare International Airport will sell nearly $1.2 billion of revenue refunding bonds in two deals in August, said market sources on Wednesday.

The first sale is for $729 million of general airport senior lien revenue refunding bonds and is slated to price during the week of August 6 through lead manager Barclays.

The sale consists of $446 million of series 2012A bonds and $251 million of series 2012B bonds, both subject to the alternative minimum tax (AMT), according to the preliminary official statement.

It also includes $32 million series 2012C bonds not subject to the AMT.

During the week of August 20, the airport will sell $443.3 million of passenger facility charge revenue refunding bonds through Citigroup.

That sale consists of $329.6 million of AMT bonds and $113.7 million non-AMT bonds.

Last week, Standard & Poor's Ratings Service revised its A-minus rating outlook to stable from positive on the airport's third-lien general revenue bonds and stand-alone passenger facility charge bonds.

The outlook revision reflected concerns about a $2.3 billion modernization program and broader economic uncertainties, including a possible stagnation in the number of passenger boardings, S&P said.

In addition, the rating agency was also concerned about what form American Airlines will take once it emerges from bankruptcy.

Fitch Ratings last week also revised the airport's general airport second lien bonds rating outlook to stable from negative, while the outlook on the general airport senior lien bonds outlook remains negative.

On July 20, Moody's Investors Service cut its rating to A2 from A1 on the airport's third lien general airport revenue, affecting about $6.5 billion of debt.

(Reporting by Caryn Trokie; additional reporting by Hilary Russ; Editing by Andrew Hay)