Atlanta airport may raise $800M - Birmingham Business Journal:

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officials have set in motion aprocess that, if approvef by Atlanta City Council, would allow for the sale of bonds to investorzs by the end of summer, potentiallgy saving the billion-dollar-plus project from a near certain The airport is also looking to refinance up to $590 milliojn in existing general revenue bonds at a better interesf rate. The fate of the Maynards Holbrook Jackson International Terminal has been caught in a disput e between the city and over anew 30-yeare airport master lease and future capitalk projects at the world’s busiest airport.
The city abortexd a move to raise $600 millionh in new debt aftere Delta pulled its support for the bond package last September and frozen credit markets prevented the airporft fromgoing forward. Lease negotiations with Deltw are continuing, but airport spokesmabn John Kennedy declined to discuss details ofthe talks. “Thie is the first step in the process towarf raising the bond money for completion of the international terminalby 2012,” Kennedy said, declining furthefr comment. Airport General Manager Ben DeCosta was at a conferencrein Philadelphia, and was unavailable for comment. A requesty for comment from Delta officials was notimmediatelu returned.
Construction in recent months hasn’ slowed, but fresh bond financing is critical to avoide a suspension of work on the Delta and the city have agreecd that construction will continues on the international terminal for as long as fundshold out. Delt officials have said the airline wantxs a new lease completed to ensure its operating costsat Hartsfield-Jackso remain competitive before makingv substantial commitments in capital for futurwe airport projects. Though Delta has been stungf by the global cut back in and is planning significant cuts ininternational capacity, the carrie r would likely need the gates once the economy rebounds.
The up-to-$800 million in new debt woulde be repaid through passengerfacility charges, airline landing and lease and other airport revenue. Sourcees familiar with the lease talks have said Delta wants to completew a new lease agreement before Mayofr Shirley Franklin leavesoffice Dec. 31. The currenr lease expires in September 2010. Sourcesw familiar with the mattersaid Hartsfield-Jackson can re-entet the bond market with or withoutr the support from the world’s largesft carrier. On June 8, Fitch Ratings affirmef the airport’s solid A-plus bond rating and revised Hartsfield-Jackson’s bond ratint outlook from negativeto stable.
According to the 53-page draf t bond package, has determined the bonds to be marketable. is the bond registra r and paying agent of the An underwriter was not identified in the It is not clearif Atlanta-based Delta (NYSE: DAL) is on-board with the new bond Though conditions in the bond marketr have improved since last September, it stands to reason the city would not try this routw again if Delta would publiclyg oppose the move. In a recent interview, Franklibn said the city has never gone to market for airport bonds without the backing of Deltwa and theother airlines. She addedr that she could not imaginew the city seeking to issue airport bondswithout Delta’xs support.
The building was designed with Delta’s internationa ambitions in mind. Delta is expecteed to take halfits gates. In it was revealed Deltq pulled its support for the originalbond package, telling bond underwrited in a September letter that the airport’ vision of future projects was too grand in scalew and didn’t include a sixth runwaty that Hartsfield-Jackson carriers want.