Ottawa International Airport Authority $270 million Bond Issue
(Ottawa, May 16, 2002) -- Ottawa International Airport Authority today announced that RBC Dominion Securities Inc. and CIBC World Markets Inc. have agreed to purchase $270 million of airport revenue bonds for private placement with institutional investors.
“The reaction to this bond offering represents yet another vote of confidence in Ottawa International Airport and its future,” said Paul Benoit, President and Chief Executive Officer of the Ottawa Airport Authority. “First, we successfully secured $120 million in bank credit facilities. Second, just two weeks ago, Moody’s Financial Service Inc. awarded our corporation the highest credit rating ever granted to a Canadian airport authority. And today, the financial market reacted immediately and positively to our offering.”
“Each of these milestones is a testament to the sound financial management of the Airport Authority and the affordability of our Expansion Program,” added Mr. Benoit.
The bond are being sold in two series: $120 million of 5.64 per cent 5 year bonds due May 25, 2007 and $150 million of 6.973 per cent 30 year amortizing bonds due May 25, 2032.
“This bond transaction will transform our debt from short-term bridge loans to long-term fixed rate borrowings to pay for Phase 1 of the Airport Expansion Program” said John Weerdenburg, Vice-President and Chief Financial Officer of the Airport Authority. “We are delighted to have arranged this financing at favourable fixed interest rates.”
The bonds will not be registered under U.S. securities laws and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements.
Ottawa International Airport is Canada's 6th busiest airport in terms of passenger volume. It serves a catchment area considered to be Canada's fourth largest in terms of population. Its 40-year old terminal building was last expanded in 1987. Since that time, passenger traffic has increased over 40%. The Airport Expansion Program is intended to ensure that the airport can meet the demands of air carriers and the travelling public for at least the next 20 years. Ottawa International Airport Authority operates Ottawa International Airport without government subsidies under a 60-year lease transfer agreement with Transport Canada. The Authority’s mandate is to manage, operate and develop Airport facilities and lands in support of the economic growth of the National Capital Region.
Laurent Benoit, (613) 248-2050
Director of Communications
John G. Weerdenburg, C.A.
Vice-President and Chief Financial Officer