"The primary purpose of the plan was to continue this administration's commitment to reduce the costs associated with the airport," Webb adds. "I am very pleased, particularly during these challenging economic times, that as a result of the sale of these four bond issues, the city was able to achieve $63 million of present value savings for DIA."
The city plans to build a Westin Hotel at DIA.
Cheryl Cohen-Vader, the city's manager of revenue, says the sales accomplish several significant objectives.
"First, it reduces the airport's overall debt burden by a considerable amount," she says. "This savings is the result of refunding bonds that have higher interest rate coupons with lower interest rate bonds. Second, it allowed the airport to reach its target of maintaining approximately 15% of its debt in the variable rate market. This allows the airport the advantages paying historically lower interest rates while broadening the base of investors that acquire airport obligations."
Webb notes the "tragic events of Sept. 11th has severely affected the air transportation industry. I am pleased that the financial community recognizes the efforts made by the airport and the city to manage the post 9/11 challenges.
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