Houston to Issue $522 Million in Bonds for Airport Upgrades, Refinance
By Paulo Trevisani
The City of Houston plans to issue nearly $522 million in bonds to fund new facilities and refinance existing debt related to United Airlines' operations at George Bush Intercontinental Airport.
The Airport System Special Facilities Revenue Bonds issuance will be split in three trances, according to preliminary official statements published Monday on MuniOS.
A $145.6 million tranche will finance a new 234,000-square-foot catering operations facility, with expected completion in 2027. Among the planned upgrades are advanced automation systems and 50 docks for a new kitchen expected to produce around 14,000 meals per day.
A second tranche, amounting to $102.8 million, is earmarked for a new 140,000-square-foot ground services equipment facility, expected to be completed in 2028. It will include office space, a battery charging area and maintenance facilities.
A $273.4 million tranche is meant to refund outstanding bonds that financed prior improvements.
All three issues are federal-tax exempt, with certain exceptions. The initial maturity dates, interest rates, and yields are yet to be defined. Pricing is preliminarily set for Nov. 18, with closing on Dec. 2.
The bonds are secured primarily by net rental payments made by United Airlines, and are unconditionally guaranteed by the company. City receipts from a replacement tenant are set to cover bond payments in case of a default by United, according to roadshow material.
S&P is expected to rate the bonds BB+. BofA Securities is leading underwriter.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
November 11, 2025 14:52 ET (19:52 GMT)
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