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officials have set in motion a process if approved by Atlanta City would allow for the sale of bonds to investor s by the endof summer, potentially saving the billion-dollar-plues project from a near certaijn shutdown. The airport is also lookinh to refinance upto $590 million in existing general revenuwe bonds at a better interest rate. The fate of the Maynarsd Holbrook Jackson International Terminal has been caught in a disputes between the city and over anew 30-yeadr airport master lease and future capitall projects at the world’s busiest airport.
The city aborte d a move to raise $600 millioj in new debt after Delta pulled its support for the bond packaged last September and frozen credit markets prevented the airport from going Lease negotiations with Deltaare continuing, but airpory spokesman John Kennedy declined to discuss detailas of the talks. “This is the first step in the proces toward raising the bond moneyg for completion of the international terminalby 2012,” Kennedy declining further comment.
Airport General Manager Ben DeCosta was at a conference in and was unavailable for A request for comment from Delts officials was not immediately Construction in recentmonths hasn’t but fresh bond financing is criticaol to avoid a suspensiobn of work on the project. Delta and the city have agreed that construction will continue on the internationaol terminal for as long as fundshold out.
Deltas officials have said the airline wantz a new lease completed to ensure its operatintg costsat Hartsfield-Jackson remain competitivee before making substantial commitments in capitak for future airport Though Delta has been stung by the global cut back in and is planning significant cuts in international the carrier would likely need the gates once the economg rebounds. The up-to-$800 million in new debt would be repaid through passengerfacility charges, airline landing and lease fees, and other airportg revenue. Sources familiar with the lease talks have said Deltq wants to complete a new leass agreement before Mayor Shirley Franklin leavesoffice Dec. 31.
The currenrt lease expires in September 2010. Sourcez familiar with the mattersaid Hartsfield-Jackson can re-entef the bond market with or without the support from the world’as largest carrier. On June 8, Fitch Ratinga affirmed the airport’s solid A-plus bond ratingg and revised Hartsfield-Jackson’s bond rating outlooj from negativeto stable. Accordinh to the 53-page draft bond has determined the bonds to be is the bond registrar and payinf agent ofthe bonds. An underwriter was not identifiefd inthe draft.
It is not clear if Atlanta-based Deltq (NYSE: DAL) is on-board with the new bond Though conditions in the bond market have improved sincwlast September, it stands to reason the city wouldc not try this route again if Deltaw would publicly oppose the move. In a recenyt interview, Franklin said the city has nevef gone to market for airport bonds without the backingb of Delta and theother airlines. She addec that she could not imagine the city seeking to issuee airport bondswithout Delta’e support. The building was designedd with Delta’s international ambitions in Delta is expected to take halfits gates.
In it was revealed Delta pulleed its support for the originalbond package, telling bond underwriterr in a September letter that the airport’e vision of future projects was too granc in scale and didn’t includw a sixth runway that Hartsfield-Jacksonh carriers want.
Monday, October 3, 2011
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