Up to $3.5 billion of airport bonds clear
Chicago council committee
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[September 13, 2016]
CHICAGO (Reuters) - Chicago would
sell up to $3.5 billion of revenue bonds this year for its O'Hare
International Airport under proposals approved on Monday by the city
council's finance committee.
With no discussion and on a voice vote, the committee sent the bond
measures to the full city council, which meets on Wednesday. The
committee on Friday postponed voting after some aldermen raised concerns
about low minority-owned firm participation in airport bond deals and
construction contracts, according to local media reports.
Mayor Rahm Emanuel proposed refunding up to $1.5 billion of general
airport revenue bonds (GARBs) through Bank of America Merrill Lynch to
save an estimated $187.2 million, according to a city briefing document.
The city would also sell as much as $1.5 billion of GARBs through Morgan
Stanley to fund a runway and air field improvements.
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The proposal calls for the sale of up to $350 million of passenger
facility charge (PFC) bonds through Loop Capital Markets to expand and
improve O'Hare's international terminal. Another approximately $80
million of outstanding PFC bonds would be refunded for savings.
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Passengers make their way through a terminal at O'Hare International
Airport in Chicago, Illinois,
September 26, 2014. REUTERS/Jim Young
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Chicago and airline officials in July unveiled a big terminal plan for
O'Hare, the world's second-busiest airport as measured in landings and
take-offs.
Credit ratings for O'Hare bonds at A and A2 with stable outlooks are
higher than the low-investment grade to junk ratings for Chicago's
general obligation debt.
(Reporting by Karen Pierog; Editing by Matthew Lewis)
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