Denver International Airport Issues Largest Single Airport Bond Issuance in History

Funds Will be Used for Airport’s Five-Year Capital Plan

DENVER – Aug. 17, 2018 – On Tuesday, Aug. 14, 2018, Denver International Airport (DEN) issued the largest single airport bond issuance in history. DEN offered $2.281 billion in bonds to fund its five-year capital plan. The market responded with strong demand resulting in DEN upsizing the offering to a final par total of $2.526 billion.

“DEN has experienced unprecedented growth with record-breaking passenger traffic over the several years and that trend is expected to continue,” said DEN CEO Kim Day. “When you combine the growth with our aging infrastructure, now is the time to begin significant improvements to the airport that will increase capacity, enhance safety and improve the passenger experience.”

Over $2 billion in bond proceeds will fund capital improvements related to these projects:

• Gate Expansion Program: Adds 39 new gates due to increasing air service demand by the airlines serving DEN. This is an increase of 30% in gate capacity. DEN’s issuance included $922 million to fund the “green” construction of new gates. Standard & Poor’s gave this portion of the issuance an E-1 rating, its highest rating.
• Great Hall Project (funds a portion of the project): Redevelops DEN’s Jeppesen Terminal by consolidating the underutilized airline ticket counters, relocating the TSA screening areas and revitalizing the shopping and dining options.

The remaining funds will be used on projects to maintain and upgrade existing facilities, including restroom renovations and updates to the train to the concourses among other airside and landside improvements.

Of the $2.5 billion issuance, $2.3 billion is subject to the alternative minimum tax (AMT) and $200 million in non-AMT.

DEN’s commitment to including our local and small business community was reflected in the underwriter’s syndicate that included 11 firms with both local Denver-based and minority owned firms represented in the pool. The issuance attracted approximately 146 investors. Retail sales to individuals totaled approximately $40 million. The total interest cost for the issuance was 4.0% with coupons ranging from 3.5% to 5.25% and the yield from 1.6% to 4.07%. The successful issuance allows DEN to continue investing in its facility while keeping costs competitive.

For more information about DEN including the Great Hall Project, visit www.FlyDenver.com.

Denver International Airport is one of the busiest airports in the world. DEN is the primary economic engine for the state of Colorado, generating more than $36 billion for the region annually. For more information visit www.FlyDenver.com, check us out on YouTube and Instagram, like us on Facebook and follow us on Twitter. Sign up for DEN’s monthly newsletter Nonstop News.

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