Branson Airport places $113M in bonds

The airport has placed $113 million in revenue bonds, underwritten by Citigroup, with a 30-year maturity. Bond proceeds and $25 million raised in private equity will fund construction of the $125 million airport south of Branson and east of U.S. Highway 65.

Closing on the bonds is scheduled for June 28, and construction is set to begin immediately afterward. Officials target a May 2009 completion date.

Key to obtaining financing, according to a city news release, was the city’s pay-for-performance contract with the airport. The city will pay the airport $8.24 for each arriving visitor; the contract has a $2 million annual cap and a 30-year term.

The airport will have a 7,140-foot runway to accommodate commercial jets and will accommodate up to an estimated 750,000 enplanements annually. Officials are in talks with several airlines about serving the area, according to the release.

Aviations Facilities Co. of McLean, Va., is developing the airport; Burns & McDonnell of Kansas City is the designer; and McAninch Corp. of Des Moines, Iowa, is the construction contractor.

This story originally appeared in SBJ’s June 18 free e-news Daily Update. Click here to register.