TULSA, OK – October 14, 2021 – S&P Global Ratings, the credit rating agency, recently revised Tulsa Airports Improvement Trust’s (TAIT) general airport revenue bond rating outlook from “stable” to “positive”, and affirmed its ‘A-‘ long-term rating. The bond rating was applied to two series of refunding bonds: the $1.98 million Series 2021A (Tax-Exempt), and the $56 million Series 2021B (Taxable), as well as the outstanding general airport revenue bonds of TAIT.
On September 21, 2021, the Series 2021A and Series 2021B Bonds priced, and TAIT with the assistance of Airport Financial Advisor Hilltop Securities and underwriter RBC Capital Markets, was able to secure reduced interest rates for this major refinancing effort. The airport has estimated a gross savings of over $14.2 million through the remaining life of these bonds, with a net present value savings of $9 million, without changing the final maturity of the bonds. This calculates to an average annual gross savings of $594,260.48 over the next 24 years.
“The airport team has worked hard to position ourselves long-term by reducing costs, while improving efficiencies,” said Fabio Spino, Executive Vice President and Chief Financial Officer of TAIT. “The significant savings the airport has achieved through this refinancing, along with the rating increase from S&P Global Ratings from ‘A-‘ stable outlook to ‘A-‘ positive outlook, are outstanding accomplishments for our airport which will assist in strengthening the airport’s foundation for the future.”
”The outlook revision reflects our view of TUL’s improving enplanement trends, with estimated July 2021 monthly enplanement 91% of the July 2019 figure, and the possibility that we could raise the rating within the next two years if we believe that the airport’s enplanement recovery is sustainable, supporting an improved market position assessment, and that the airport can maintain financial metrics consistent with a strong financial risk profile,” S&P Global Ratings said in their ratings summary. Tulsa International Airport is only one of two airports in the country that have recently had bond ratings assigned by S&P Global Ratings improved, the other being Dallas Love Field (DAL).