Santa Ana, CA – John Wayne Airport, the only commercial airport in Orange County, successfully sold $48,680,000 million in Series 2003 Revenue Refunding Bonds on the bond market earlier this week. Proceeds from the bonds, which sold at a premium of $4,205,712, together with approximately $10.2 million in Airport reserves will be used to refund the $65,250,000 principal amount outstanding on the Airport’s Series 1993 Bonds on July 1, 2003. This transaction will provide for a reduction in the Airport’s annual debt service payment of approximately $1.5 million per year for the period of July 1, 2003 through June 30, 2018, resulting in a net present value economic gain of $6,187,000. The transaction further provides for a reduction in the Airport’s outstanding bond debt from $165,535,000 to $148,965,000.

"The sale of the bonds demonstrates the confidence the financial community has in the Airport’s financial stability," said Alan L. Murphy, Airport Director. "John Wayne Airport has placed a high priority on repaying our bonded debt to continue our commitment in maintaining strong financial operations."

The Series 2003 Bonds were insured by AAA-rated Financial Security Assurance Inc. and assigned underlying ratings of Aa3 and A+ from Moody’s and Standard & Poor’s respectively. Bear, Stearns & Co. Inc. served as senior underwriter and Morgan Stanley & Co. Inc. as co-underwriter for the Series 2003 Bond issue.

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