State of Hawaii Airport Revenue Bonds – $251 Million | MuniNet Featured Bond
Featured Municipal Bond in the Market, Week of 07/10/2017: State of Hawaii Airport Revenue Bonds – $251 Million
This week’s featured bond comes from the State of Hawaii. Hawaii is issuing airport system customer facility charge revenue bonds in the amount of $251 million the week of July 10, 2017. The Hawaii airport revenue bonds consist of a single series, Series 2017A, which are being issued to pay the costs of design, development, and construction of consolidated rental motor vehicle facility projects at certain airports of the State’s airports system and comprising the Statewide Airports Rental Car Facilities System, and to fund the Rolling Coverage Fund Requirement and Debt Service Reserve Fund Requirement for the bonds.
The following tables from the preliminary official statement describe the plan to finance construction using a combination of Bond proceeds and collections of the Customer Facility Charge, imposed by the State of Hawaii on rental motor vehicle customers who use or benefit from rental car facilities at all airports in the state Airport System:
The bonds are secured solely by, and payable solely from the Customer Facility Charge and payment by rental car operators (RACs) of the Minimal Annual Requirement Deficiency. The Department of Transportation Airports Division is authorized to increase the rate of the Customer Facility Charge and require payment of an additional Minimal Annual Requirement Deficiency that will be sufficient to pay debt service on the Bonds and to pay the costs of operation, maintenance, and repair of the Airports Rental Car Facilities System. Further details on the purposes, security, tax status, and other matters pertaining to these Hawaii airport revenue bonds can be found in the preliminary official statement, provided by MuniOS.
As of May 2017, the State of Hawaii has an unemployment rate of 2.7%, which is 1.6% lower than the national rate for May, and 0.3% lower than at the same time in 2016. The chart below shows the changes in the State of Hawaii and U.S. unemployment rates for the past ten years. MuniNet provides this data and more, easily accessible, for all 50 states and each Metropolitan Statistical Area in the country, in our Employment Database.
Provided at left is a quick snapshot of financial characteristics of the State of Hawaii Airports System, as of 06/30/2016, along with the medians for other large U.S. airport hubs for 2015-2016, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness). In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages, and our employment database.
These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.