The agreement finalizing the refinancing of $39 million in airport revenue bonds was signed during a news conference this morning at the Guam International Airport.
Because the bonds are triple tax-exempt, there were nearly seven times more offers to buy them than bonds available.
That demand drove the initial interest rate down from 5.7 percent to 3.4 percent.
Airport executive director Tom Ada said the refinancing saved the airport $1 million in debt payments right off the bat.
It also freed up $20 million in additional dollars that can be used as matching funds to secure federal funds for airport capital improvement projects.
“To improve the air conditioning system, we need to undertake the updating of our master plan which was last done in 2012, and a number of other capital improvement projects,” Ada said.
The bonds got a medium investment grade rating, with a stable outlook and moderate risk. This was the airport’s first bond offering since 2013.