Ontario International Airport plans to sell roughly $174 million in municipal bonds to pay for improvements that include terminal work and runway reconstruction. Pricing is slated for Tuesday, with Bank of America Corp. and Ramirez & Co. serving as lead managers.
Set in a fast-growing Inland Empire market that spans Riverside and San Bernardino counties, the airport is about 35 miles from downtown Los Angeles to the east and acts as a gateway to Palm Springs, Joshua Tree National Park, and the Coachella Valley. A Sept. 24 release showed international traffic running almost 31% higher than the same period last year, while total passenger volume edged up 0.3%.
Before the bonds come to market, Fitch Ratings boosted the authority's outstanding debt to A+ from A-, an increase of two steps, citing strong financial performance backed by vigorous enplanement growth.
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About $124 million of the bonds would fall under the alternative minimum tax, a detail in the offering materials that matters for after tax returns. The offering is expected to price on Tuesday, with Bank of America Corp. and Ramirez & Co. leading, and arrives after Fitch's upgrade to A+ from A-.
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