RENO, Nev. (Aug. 20, 2024) – The Reno-Tahoe Airport Authority (RTAA) announced the successful sale of $238.3 million in Airport Revenue Bonds, Series 2024A and Series 2024B (2024 Bonds). Funds generated from this bond issuance will finance the first installment of debt required to support the RTAA’s MoreRNO Infrastructure Program at the Reno-Tahoe International Airport (RNO).
2024 Bond Breakdown:
Despite a challenging Treasury market environment, the 2024 Bonds secured significant interest from over 65 unique investors, with orders exceeding $2.6 billion—over 11 times the amount offered. The 2024 Bonds include $159.9 million of Series 2024A Bonds, which are subject to the Alternative Minimum Tax (AMT) and $78.4 million of Series 2024B Bonds, which are exempt from AMT.
MoreRNO program projects benefiting from 2024 Bonds:
The 2024 Bonds received credit ratings from Moody’s Investors Service, S&P Global Ratings and Kroll Bond Rating Agency, all within an “A” rating category*. These ratings reflect the RTAA’s solid financial standing and confirm outside agencies’ positive view of the northern Nevada regional economic growth trajectory and the need to invest in its infrastructure.
The All-in True Interest Cost (TIC) on the Series 2024 Bonds was a competitive 4.57%, demonstrating the RTAA’s ability to secure favorable financing terms in a dynamic market.
“The RTAA is thrilled with the outcome of this bond issuance, which reflects both the confidence investors have in the future of RNO and our commitment to driving growth and innovation through the MoreRNO program,” said Cortney Young, Reno-Tahoe Airport Authority Board Treasurer. “For some time, the RTAA has been virtually debt-free, but with the launch of our multi-year infrastructure program, this will no longer be the case. These bonds are imperative for funding the necessary improvements that will enhance the passenger experience and meet the growing air travel demands of our region.”
BofA Securities served as the lead underwriter for the 2024 Bonds, providing expert guidance and execution throughout the transaction.
*Rating category: Each rating agency uses its own methodology and criteria to evaluate creditworthiness. The RTAA received ratings of “A3” from Moody’s Investors Service, “A” from S&P Global Ratings, and “A+” from Kroll Bond Rating Agency. Differences in ratings arise from variations in agency criteria, risk assessment models and economic outlooks.
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The Reno-Tahoe Airport Authority (RTAA) operates two of the most important economic drivers for our region–the Reno-Tahoe International Airport (RNO) and the Reno-Stead Airport (RTS). The RTAA is financially self-sufficient, meaning it is funded through airport operations and not state or local taxes. The RTAA is transforming the travel experience at RNO with a multi-year infrastructure program, MoreRNO. This construction program—the largest ever at the airport—will bring passengers more of what they love. Learn more at www.MoreRNO.com.