Houston to promote particular amenities income bonds for United Airways

Houston Airport System

Houston will promote as much as $690 million of particular amenities income bonds for United Airways later this month after the town council authorised the debt issuance on Wednesday.

The bonds, that are topic to the choice minimal tax, are secured by United’s particular facility lease funds, in accordance with metropolis council paperwork.

About $220 million of bonds will finance a bigger catering operations facility for United at George Bush Intercontinental Airport, whereas one other roughly $180 million of bonds will finance development and equipping of a substitute floor providers gear facility for the airline, which is the airport’s greatest provider. 

As much as $290 million of bonds will defease and refund excellent Sequence 2011 and Sequence 2015B-1 AMT bonds that financed terminal initiatives for Continental Airways and United.

The bonds are scheduled to cost Nov. 18 with Financial institution of America Securities main an underwriting crew consisting of senior managers JPMorgan, Loop Capital Markets, Raymond James, and Morgan Stanley, and co-managers RBC Capital Markets, Siebert Williams Shank, and Mesirow Monetary.

In November 2024, Houston bought its greatest particular amenities income bond sale — a $1.1 billion AMT problem backed by junk-rated United to finance terminal initiatives. These bonds had been rated BB-minus by Fitch Rankings. Moody’s Rankings gave the deal a Ba3 ranking, which was a notch beneath United’s company ranking of Ba2.

As of Dec. 31, 2024, United assured about $2.9 billion of tax-exempt particular facility income bonds issued for varied airports.