San Diego International Airport – 2014A & 2014B

San Diego International Airport
Senior Special Facilities Revenue Bonds, Series 2014A & 2014B

Landmark Financing for San Diego International Airport’s Construction of Rental Car Center

Siebert Brandford Shank served as senior manager for the financing of San Diego International Airport’s new consolidated rental car center, which priced on February 5, 2014. The transaction represented a new credit for the Authority as well as the largest stand-alone CFC bond issuance to date and the first stand-alone CFC issuance in the State of California. The pre-marketing effort proved highly successful as the Authority received orders from 94 separate institutional investors for the taxable bonds and an additional 15 separate institutional investors for the tax-exempt bonds. The transaction achieved aggressive final pricing spreads with the taxable bonds spread only 195 basis points over the 30-year treasury in 2043 (with a 10-year par call) and 90 basis points over the 30-year AAA MMD rate for the tax-exempt bonds maturing in 2044 (also with a 10-year par call) – these represent the tightest 25-year to 30-year pricing spreads of any stand-alone CFC deal since the credit crisis.