On January 26, 2023, the City of St. Louis Missouri (the “City”) and St. Louis Lambert International Airport (the “Airport”) sold its $64.935 million Airport Revenue Bonds, comprising of $60.080 million of Airport Revenue Bonds, Series 2023A (Non-AMT) and $4.855 million of Airport Revenue Bonds, Series 2023B (AMT) (the “Bonds”) with Loop Capital Markets serving as Book Running Senior Manager. The Bonds are rated A2 (Stable) and A (Stable) by Moody’s and Fitch, respectively recognizing the enplanement recovery and route expansion at the Airport.
Bond proceeds will be used to (i) finance the costs of the construction and improvement of the Airport, (ii) fund the purchase of a debt service reserve surety for the Bonds, and (iii) pay costs of issuance for the Bonds. The Firm assisted the City and Airport in creating the rating agency and investor presentations. The transaction was well received with almost all 33 investors having viewed the POS and investor presentation during the pre-marketing process. Additionally, the City and Airport answered questions received from investors during the pre-marketing process. The Firm provided the City, Airport and Financial Advisors read sheets with investor feedback throughout the pre-marketing period.
The City and Airport received strong interest with over $136 million of priority orders or 2.1x overall subscription. Investors primarily consisted of Bond Funds and SMAs. Due to strong investor interest, spread to MMD was reduced between 2 and 4 basis points, at spots along the yield curve, between pre-pricing and final pricing. The Bonds had an All-In TIC of 4.14%.