The Minneapolis-St. Paul Metropolitan Airports Commission sold $671.1 million in bonds to finance capital improvements at one of the largest airports in the Midwest.
The commission sold $206 million in non-AMT bonds and $465.1 million in AMT bonds. The non-AMT bonds mature between 2052 and 2054, yielding between 4.08% and 4.28%. The AMT bonds mature between 2026 and 2049, yielding between 3.53% and 4.29%. The securities received a rating of A+ from Fitch Ratings and from S&P Global Ratings.
The rating reflects “the airport’s strong air service area with a stable and increasing enplanement base underpinned by origination and destination (O&D) traffic,” Fitch analysts wrote.
The commission will use the issuance proceeds to fund upgrades at Minneapolis–Saint Paul International Airport (MSP) included in its $4.3 billion capital plan. These include terminal expansion, gate modernization, and electrical improvements.
MSP is dominated by Delta Air Lines, Inc, which accounted for more than 70% of enplaned passengers at the airport last year, according to the official statement accompanying the sale of the bonds.
The airports commission is a state agency that runs MSP and six smaller airports. The bonds are limited obligations of the commission, payable by its net revenue.
Wells Fargo Bank, NA, served as lead underwriter on the issuance, purchasing the bonds for $709.8 million. The price reflected a premium of $41 million and a discount of $2.4 million. Frasca & Associates, LLC acted as financial advisor.