OTTAWA INTERNATIONAL AIRPORT UNDERTAKES BOND FINANCING
Ottawa Macdonald-Cartier International Airport Authority (OMCIAA) announced today that it has agreed to sell $200 million of its Series D Airport Revenue Bonds to institutional investors on a private placement basis through its agents CIBC World Markets and RBC Capital Markets. The bonds will bear interest at 4.733% per annum and will have a term of ten years. The bond issue is scheduled to close on May 2, 2007. One hundred twenty million dollars of the proceeds are ear-marked for refinancing of existing revenue bonds maturing on May 25, 2007, with the remaining $80 million to be used to provide long-term financing for Phase II of the Authority's Airport Expansion Program (AEP).
According to Paul Benoit, President and Chief Executive Officer of the Authority, "the AEP is designed to meet the needs of the National Capital Region for a 20-year period. Phase II includes an extension of the terminal building originally completed in 2003 as part of Phase I, an expansion of the parking facilities and improved aircraft access to the terminal building."
OMCIAA operates Ottawa International Airport without government subsidies under a 60-year lease transfer agreement with Transport Canada. The OMCIAA’s mandate is to manage, operate and develop airport facilities and lands in support of the economic growth of the National Capital Region. Its state-of-the-art passenger terminal building opened for business on October 12, 2003, and is being expanded to accommodate growth in passenger volumes.