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 News Massport Leverages PFC Revenues for International Gateway Project Massport's most recent $249 million bond issue, on June 16, 1999, consisted of bonds that will be repaid solely by passenger facilities charges(PFCs). This is the first time Massport the bonds will be repaid by PFCs. PFCs are user fees assessed on airline tickets (up to $3.00 per ticket) for departing flights. Airport operators may apply to the FAA to collect and use these fees to help finance portions of airport improvement projects. In this instance, the bond sale will fund the International Gateway Project, a key component of the Logan Modernization. The International Gateway Project will include: renovation of approximately 170,000 square feet of existing space in Terminal E; the addition of approximately 410,000 square feet to Terminal E; development of a new 2-level terminal roadway system, and replacement of passenger loading bridges. Logan was able to employ this unique financing program because of a strong origin and destination market at Logan and buyer confidence in the continued growth of passenger traffic at Logan. The arbitrage yield for the bonds is 5.139%. The bonds are exempt from federal and Massachusetts income taxes. |
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