With TWA Sold, St. Louis to Peddle Airport Debt(93%)

CHICAGO - St. Louis may come to market with $535 million of airport-related debt within the next 30 days following the completion last week of American Airlines' acquisition of Trans World Airlines Inc., an airport official said Thursday.

Earlier this year, the city had planned to sell $450 million of general airport revenue bonds and another $85 million of capital improvement bonds for Lambert-St. Louis International Airport. Those plans stalled after American and St. Louis-based TWA announced a buyout plan. Last week, the two major air carriers wrapped up the deal.

Airport communications manager Michael Donatt said the city is moving forward with the deals, and they could price within 30 days.

"They are going to proceed as they always intended to," he said.

Goldman Sachs & Co. is book runner on the larger deal, and Bear, Stearns & Co. is book runner on the smaller transaction.

City officials have praised the acquisition, saying it will boost the airport's financial position because American is a stronger company than TWA, which operates a hub at the airport. American has said it plans to keep the Lambert hub in place.

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