The bonds, which represent the first major debt for the airport ‘for some time,’ is necessary for the billion-dollar MoreRNO expansion project, airport authority says.
A major expansion project for the Reno airport secured crucial funding after a successful bond sale to investors.
The Reno-Tahoe International Airport announced on Tuesday that it generated $238.3 million in funds for its billion-dollar MoreRNO project after issuing airport revenue bonds.
The Reno airport bonds, which will be new debt for the airport, were split into two types with differing amounts:
- $159.9 million: This involves Series 2024A bonds, which are subject to the alternative minimum tax. The alternative minimum tax places a floor on owed taxes that can’t be exceeded to ensure that a person does not end up with zero taxes by abusing tax deductions.
- $78.4 million: This involves Series 2024B bonds. These bonds are not subject to the alternative minimum tax.
The Reno airport bonds saw a lot of interest despite higher interest rates making treasuries a less desirable investment vehicle due to lower returns. Total orders for the bond exceeded $2.6 billion from more than 65 unique investors.
The demand reflects confidence in the MoreRNO project, said Cortney Young, treasurer for the Reno-Tahoe Airport Authority.
The bonds also represent new debt for the airport, which is necessary due to the large scope of the MoreRNO project, according to the airport authority.
The Reno airport just recently finished an expansion of its ticketing lobby. The MoreRNO project also includes plans for a new consolidated rental car facility and two new concourses.
“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,” Young said.
“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.”