AFCO Closes on $19M Refinancing for Air Cargo Facilities at Austin, Hartford, Pittsburgh and Richmond Airports
Transaction Expands the AFCO Airport Real Estate Group Financing Vehicle
Dulles, Va., July 12, 2021—An affiliate of Aviation Facilities Company Management, LLC (“AFCO”) recently closed on more than $19 million in financing for cargo facilities at Austin-Bergstrom International Airport (AUS), Bradley (Hartford) International Airport (BDL), Pittsburgh International Airport (PIT), and Richmond International Airport (RIC). The transaction is a part of the established AFCO Airport Real Estate Group (“AFCO AREG”), an Obligated Group financing vehicle for AFCO.
AFCO will use the funds to repay the prior AFCO Investors II Portfolio Series 2013 Bonds.
The financing comes from the sale of Series 2021 Airport Revenue Bonds issued by the Public Finance Authority of Madison, Wisconsin, as part of an expandable Obligated Group structure. Standard & Poor’s assigned the bonds a rating of BBB (Stable). AUS, BDL, PIT, and RIC join the initial properties in the Obligated Group located at Baltimore/Washington International Thurgood Marshall Airport (BWI), Dallas/Fort Worth International Airport (DFW), and Mather Field in Sacramento, CA (MHR). AFCO AREG was initially created to provide a source of debt financing for AFCO’s ongoing portfolio growth program focused on the acquisition and development of on-airport projects throughout the U.S.
“We are very pleased to successfully close on the bond sale and to strengthen the existing AFCO AREG structure by adding our cargo facilities at Austin, Hartford, Pittsburgh and Richmond into the AREG portfolio,” said Chuck Stipancic, President & CEO of AFCO. “We are also very pleased to maintain our investment grade BBB rating from S&P as part of our financing effort.”
The Series 2021 Bonds were underwritten by Goldman Sachs & Co. LLC.