Office of the Comptroller

Refunding Bonds Save Airport Millions

“On balance, this refunding transaction represents a ‘win-win’ for everyone involved,” said Comptroller Darlene Green.

July 1, 2011 | 2 min reading time

This article is 13 years old. It was published on July 1, 2011.

The city of St. Louis sold $30.5 million in refunding bonds last month to refinance some previously issued, higher cost Lambert Airport debt, freeing up millions in revenue the airport can use to fund other priorities.
Comptroller Darlene Green
"On balance, this refunding transaction represents a 'win-win' for everyone involved. We are all very pleased with this sale and my office will continue to work hard with Lambert officials to ensure the airport's finances remain strong," said Comptroller Darlene Green.

The refunding transaction provides several benefits for the city, airport, signatory airlines and bond investors. The transaction produces annual debt service savings of approximately $1.5 million per year for four years, thereby reducing payments made by the airport's signatory airlines. The bond financing also allows the city to deposit over $2 million into the debt service stabilization fund.

"This refinancing comes at a critical time for us as we have just completed a new five-year use and lease agreement with the airlines. We are thrilled at the cost savings it will generate for the airport and it reaffirms our commitment to the airlines to continue seeking opportunities to lower costs," said Lambert Airport Director Rhonda Hamm-Niebruegge.