STATE COMPLETES SALE OF $80.9 MILLION OF AIRPORTS SYSTEM REVENUE BONDS

For Immediate Release August 21, 2003

HONOLULU – Governor Linda Lingle announced the Department of Transportation’s Airports Division sold $80,900,000 of Airports System Revenue Bonds to refinance certain outstanding debt.  The Bonds were sold with an initial yield of only 1.00% to July 1, 2004.  The State was able to take advantage of historically low short-term interest rates, and lock-in over $2.2 million of debt service savings for Fiscal Year 2004.

The Department of Budget and Finance worked closely with the Department of Transportation to develop an innovative structure to achieve significant near-term savings for the Airports Division. 

“Our administration is committed to maintaining the financial strength of the State’s Airports System as evidenced by the highly successful bond sale,” said Governor Lingle.

Despite continuing investor concerns about the air travel industry, the Bonds were well received by the market.  The Bonds were purchased by a number of large national money market funds and high net worth individuals.  The Bonds were underwritten by UBS Financial Services Inc., and a Letter of Credit from Société Générale, a highly rated European bank, provided additional security and liquidity for the Bonds.

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For more information, contact:
Georgina Kawamura  
Director, Budget & Finance Dept.  
Phone: 586-1518

Lenny Klompus
Senior Advisor – Communications
Phone: 586-7705

Russell Pang
Chief of Media Relations
Phone: 586-0043