BAA Restructures Debt, Improves Financial Position for BHM
A Significant Savings in Excess of $33 Million
BIRMINGHAM, Ala. – July 9, 2020 – The Birmingham Airport Authority Board of Directors recently voted to restructure the outstanding debt of the Birmingham Airport Authority’s revenue bonds. This vital action will result in interest savings in excess of $33 million and will position the Birmingham-Shuttlesworth International Airport to be one of the most financially viable small hub airports in the country. This restructure will also give the airport the ability to be debt free in 2031 when the airport celebrates its centennial anniversary.
During its June meeting, the Board of Directors unanimously approved a resolution authorizing the refinancing of the Airport Authority’s 2010 revenue bonds and the issuance of the Airport Revenue Bonds, Series 2020, in the aggregate principal amount of $102,130,000. The Airport Revenue Bonds, Series 2010 at issuance consisted of $151,705,000 of tax-exempt serial bonds with interest and maturity. This financial restructure decreases the Airport Authority’s maximum annual debt service payments from $16.6 million to approximately $10 million.
“The airport is an economic generator for our city, and we want to ensure that it continues to make a strong, reliable, and sustainable economic impact, while also providing a positive travel experience for our customers, said Ronald F. Mathieu, Birmingham Airport Authority president and chief executive officer. “By restructuring our debt, we are taking strategic steps to improve the airport’s financial position, forging a path to reach our ultimate goal of being debt free.”
Passengers traveling through the Birmingham-Shuttlesworth International Airport will benefit from this restructure as it allows for lower operating costs, making the airport more competitive and attractive to airlines. An improved financial position for the Airport Authority will also allow for more significant enhancements to the passenger experience and airport facility.
“We have a great airport in Birmingham that is positioned for growth,” said David Germany, chairman of the Birmingham Airport Authority Board of Directors. “We have a strong foundation, and we will continue to take every opportunity to build on our history of financial strength so we can better focus on traveler needs and ensure a positive experience for all that travel through the airport.”
In November 2019, the Board of Directors approved the retirement of the Airport Authority’s 2003A and 2007 revenue bonds, which were paid in full in December, as a part of its innovative debt elimination plan.
About Birmingham-Shuttlesworth International Airport
As Alabama’s largest commercial airport serving nearly 3 million passengers annually, Birmingham-Shuttlesworth International Airport has served a gateway to the sky for more than 85 years. Governed by the Birmingham Airport Authority, the airport continues to be a catalyst for growth and economic development for the entire region. For more information, visit flybirmingham.com.