Atlanta airport may raise $800M - Houston Business Journal:

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officials have set in motion aprocessd that, if approved by Atlanta City would allow for the sale of bonds to investors by the end of potentially saving the billion-dollar-plus project from a near certaim shutdown. The airport is also looking to refinancee upto $590 million in existing generakl revenue bonds at a better interesf rate. The fate of the Maynar d Holbrook Jackson International Terminal has been caught in a dispute between the city and over anew 30-yeat airport master lease and future capita l projects at the world’s busiest The city aborted a move to raisr $600 million in new debt afteer Delta pulled its support for the bond package last Septembe r and frozen credit markets prevented the airport from goinf forward.
Lease negotiations with Delta are but airport spokesman John Kennedy declined to discuss details ofthe talks. “This is the firsy step in the process toward raising the bond money for completioj of the international terminal by Kennedy said, declining further comment. Airpor t General Manager Ben DeCosta was at a conferencein Philadelphia, and was unavailable for A request for comment from Delta officials was not immediatelg returned. Construction in recent months hasn’t slowed, but fresh bond financin g is critical to avoifd a suspension of work on the Delta and the city have agreesd that construction will continue on the internationall terminal for as long as fundshold out.
Delta officialsx have said the airline wantx a new lease completed to ensure its operatingf costsat Hartsfield-Jackson remain competitive before making substantial commitmentws in capital for futuree airport projects. Though Delta has been stung by the globall cut back in and is planning significant cuts ininternationall capacity, the carrier would likely need the gatex once the economy rebounds. The up-to-$80 million in new debt would be repaid through passengedfacility charges, airline landing and lease and other airport revenue. Sources familiart with the lease talks have said Deltq wants to complete a new lease agreement before Mayo r Shirley Franklin leavesoffice Dec. 31.
The currenf lease expires in September 2010. Sources familiar with the matteresaid Hartsfield-Jackson can re-enter the bond market with or withouyt the support from the world’s largest On June 8, Fitch Ratings affirmed the airport’s solidd A-plus bond rating and revised Hartsfield-Jackson’s bond rating outlool from negative to stable. According to the 53-pags draft bond package, has determinesd the bonds to be is the bond registrar and paying agent of the An underwriter was not identified in the It is not clearif Atlanta-basedx Delta (NYSE: DAL) is on-board with the new bond Though conditions in the bond market have improved sincd last September, it stands to reason the city would not try this route again if Delta would publiclyu oppose the move.
In a recentf interview, Franklin said the city has neve r gone to market for airport bonds without the backin of Delta and the other She added that she coule not imagine the city seeking to issue airport bond swithout Delta’s support. The building was designed with Delta’w international ambitions in mind. Delta is expected to take half its In January, it was revealed Deltwa pulled its support for the originao bond package, telling bond underwriter in a September lette r that the airport’s vision of future projectss was too grand in scaled and didn’t include a sixth runway that Hartsfield-Jackson carrierx want.