"Everything just lined up," said Vernon Evans, chief financial officer for the San Diego County Regional Airport Authority.
"The market was good, we hit it at the right time, we had little debt, and the investors were hungry for our paper."
Indeed, institutional investors were so eager to buy the airport agency's highly rated bonds, that officials, after consulting with financial advisers and underwriters, decided to increase the size of the issue from $424 million to $572.6 million, Evans
"We did much better than we thought we would," said Evans
, clearly elated over the lower rate.
Besides having some fairly decent credit ratings, and very little outstanding debt, the airport agency also benefited from being the only municipal bonds issued at the time, Evans
The Federal Reserve Bank
also didn't change the fed funds rate and maintained it at zero to 0.25 percent on Sept. 21.
Surplus of Investors
From the outset of the bond sale that began Sept. 21 and ended the following day, it was clear there were more investors than bonds available, Evans
That prompted officials to re-price the bonds (lower the rate) and increase the amount of debt issued about $148 million.
So well were the bonds received that the interest rate was nearly equivalent to what Los Angeles International Airport received when it issued bonds earlier this year, Evans
The higher issue also means the agency likely won't have to go back to the bond market for at least 18 to 24 months, Evans