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The Public Finance Authority closes multistate bond issuance generating $4.6 million in savings for cargo facility operator

Refinancing of Multiple Bonds into One Bond Issuance Reduces Borrowing Costs and Simplifies Debt Structure

The Public Finance Authority (PFA) announces the closing of a bond issuance on behalf of Aviation Facilities Company, Inc. (AFCO), a full-service real estate development and management organization specializing in airport and other transportation-related infrastructure facilities. Through this unique financing, multiple benefits will be delivered:

  • A single, federal tax-exempt bond issuance of $27,840,000 will refinance existing bonds previously issued for facilities in Pennsylvania, Texas and Connecticut.
  • AFCO will be able to take advantage of attractive market conditions and reduced borrowing costs to produce $4.6 Million in net present value savings over the life of the new bonds.
  • Strengthens each facility’s ability to service its debt and maintain higher debt service coverage ratios through cross-collateralization.
  • Simplifies existing debt structure and strengthens the long-term financial viability of AFCO’s portfolio.

PFA’s multistate issuance expertise, working alongside Guggenheim Securities, LLC as underwriter, Greenberg Traurig, LLP as bond counsel and Orrick, Herrington & Sutcliffe LLP as underwriter’s counsel, enabled closing of the transaction in less than five months. 
Public Finance Authority (PFA) is a government entity established to issue tax-exempt conduit bonds for public and private entities nationwide and is sponsored by the Wisconsin Counties Association, Wisconsin League of Municipalities, the National Association of Counties and National League of Cities. PFA provides the means to efficiently and reliably finance public benefit projects that create jobs, affordable housing and infrastructure, and improve the overall quality of life in local communities. PFA partners with private borrowers and provides local governments with the technical assistance needed to bring tax-exempt and taxable bonds to market nationwide.