DALLAS — Oklahoma City Airport Trust will fund a new rental car facility at Will Rogers World Airport with up to $50 million of taxable revenue bonds set for sale in early September.
The bond issue was approved by the Oklahoma City Council Tuesday night. Actual par value is expected to be approximately $44 million.
The 30-year junior-lien bonds will be supported by a $4.50 per-transaction charge on vehicles rented at the Oklahoma City airport.
Oklahoma City Airport Trust has $73 million of outstanding junior-lien debt rated A2 by Moody's Investors Service and A-plus by Standard & Poor's.
Citi is senior manager for the negotiated sale. Co-managers include BOSC Inc. and Wells, Nelson & Associates Inc.
Co-bond counsels are The Public Finance Law Group PLLC and Williams, Box, Forshee & Bullard PC.
Public Finance Manager is the Trust's financial advisor.
The new facility is more convenient for customers and will consolidate maintenance and operations for the nine rental companies involved, said Airports Director Mark Kranenburg.
The new rental center will accommodate 900 vehicles, he said.
The airport currently has 400 parking spots for rental vehicles, he said, with demand averaging 600 vehicles a day. The companies must shuttle cars to the airport from off-site lots, Kranenburg said.
The car rental charge was levied in 2012, Kranenburg said, and is expected to generate $4.5 million in fiscal 2014 with annual increases.
The 19,000-square-foot rental service facility will be built on a 35-acre site close to the airport terminal.
The airport also will use the proceeds to purchase a fleet of buses running on compressed natural gas to connect the consolidated rental facility with the main terminal.
Work is scheduled to begin later this year, with completion in 2015.