Branson Airport misses bond payment

After a 2018 settlement resulted in new bonds for Branson Airport, the organization has missed a payment.

A notice of non-payment of bonds was issued to bondholders on June 15, according to documents filed with the Municipal Securities Rulemaking Board and shared with Springfield Business Journal. UMB Bank is the bond trustee.

"Payment was not made when required. Events of default have accordingly occurred,” the June 15 filing reads. “The bond trustee continues to assess what action may be appropriate given these circumstances, including the company requests for relief."

The document does not state the payment amount that was due to bondholders on April 1. The payment due is related to a bond with a principal amount of $3 million and a 5% interest rate, per the 2018 settlement, MSRB documents show.

UMB Bank Senior Vice president Laura Roberson, who is named in the June document as the contact person for bondholders, declined to comment, noting that "all of the public information is out on EMMA." Bond documents are available to the public through the Electronic Municipal Market Access portal, a service of the MSRB.

Stan Field, Branson Airport executive director, sent a statement via email.

"The airport is working with the majority bondholders, and with the bond trustee, to extend relief. We expect this will have no negative impact on our current operations," the statement reads.

The 2018 settlement followed years of defaulted bond payments by Branson Airport, which took out the bonds to fund its 2009 opening, according to past reporting. The settlement canceled existing bonds and issued $32.5 million in new bonds in exchange for 65% of Branson Airport’s assets and equity. The settlement also gave Branson Airport $3 million in working capital.

Earlier this year, Minneapolis-based Sun Country Airlines announced it would launch commercial service at Branson Airport, according to past reporting. For Branson fliers, Sun Country offers nonstop service to and from Minneapolis-St. Paul International Airport beginning Sept. 17, according to its website. Frontier Airlines chose not to continue providing commercial service to Branson Airport this year, leaving private flights as the only travel option at the airport.

Southwest Airlines (NYSE: LUV) stopped operation at Branson Airport in 2014 after just over a year operating there, SBJ previously reported.