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Airport staff seek authorization to sell up to $700M in revenue bonds to finish redevelopment program
Summary
Salt Lake City Airport staff told the council they will seek authorization to issue up to $700 million in airport revenue bonds (anticipated issuance about $634M) to finance remaining capital work at the Salt Lake City International Airport and outlined schedule, contingencies and debt-service assumptions.
Airport leadership briefed the council on May 13 about a proposed bond authorization enabling placement of up to $700,000,000 in airport revenue bonds to fund outstanding capital work on Salt Lake City International Airport redevelopment.
Bill Wyatt (executive director of airports) and Brian Butler (airport CFO) said staff expects to borrow roughly $634 million (authorization allows cushion to $700M to accommodate market volatility), with an illustrative pricing assumption near 5.55 percent and customary options to vary maturity (the team requested pricing flexibility to 30–40 years during underwriting). The broader airport redevelopment program totals more than $5.13 billion of project value; about $3.84 billion of that program will be debt‑backed. Bond proceeds will fund construction (approximately $560M of the issuance estimate), capitalized interest, a debt-service reserve (about $45M), interest carry and transaction costs. If market rates rise above an internally set threshold (roughly 6.5%), staff said they would defer issuance and rely on a previously authorized $300M line of credit (about $200M currently drawn) as a contingency.
Staff outlined a public schedule: council adoption of a bond resolution is anticipated in formal session on June 3, notices and a 30‑day contest period begin June 9, a required public hearing is planned for July 1, rating‑agency meetings and pricing are expected in July, with closing in August. Airport staff told the council they are engaging Moody’s, S&P and Kroll and expect ratings activity concurrent with the sale timetable.
Council members asked about recession risks, investor demand and Concourse C timing. Staff replied financings remain attractive to fixed‑income investors seeking yield, that no airport has defaulted on debt, and that Concourse C depends on demonstrated passenger-volume growth and airline concurrence; refinancings will be a multi‑year process beginning as bonds become callable (2027 onward).
No vote was taken; staff will return with required documents and public-hearing notices for the June–July schedule.
Provenance: presentation and Q&A during the May 13 council work session.
