1 day Ago By By Nestor Licanto Pacific Daily News
The Guam International Airport Authority said it will save $3.23 million through the sale of $67.8 million in bonds Tuesday in New York.
The savings would be derived over the remaining terms of the bonds through fiscal 2043, according to a GIAA news release on Wednesday. The GIAA bonds were oversubscribed by 9.3 times, which allowed for an opportunity to lower borrowing rates for higher savings, the airport said.
Gov. Lou Leon Guerrero said her administration has achieved debt service reduction that has saved over $124 million in 10 bond issues during her term. Overall interest rates have declined since their Fall 2023 peak levels and the tender and refinancing structure allowed GIAA to offer to buy bonds that could not otherwise be refinanced for debt service savings from existing GIAA bond holders and sell refunding bonds to finance the purchase, the airport said.
In the current interest rate environment, municipal issuers have increasingly used tender offers to generate debt service savings, it added. "We believe investors showed strong interest in this transaction given the continued improvement in GIAA financial metrics as well as progress in our tourism industry," GIAA Board Chairman Brian Bamba said in the same press release. But visitor arrivals continue to lag well below the record 2019 levels, as Guam Visitors Bureau Deputy General Manager Gerry Perez reported to the GVB board Tuesday that overall tourist arrivals were tracking at just 44.
2% of pre-pandemic levels. According to a June Office of Public Accountability financial audit report of the GIAA, its total operating revenues increased by $7 million, rising from $33.2 million in fiscal 2022 to $40.
2 million in 2023. This was primarily attributed to increases in facilities and systems usage charges by $13.5 million, rental income by $1.
6 million, and miscellaneous revenues by $1.5 million. These increases were partially offset by the significant decrease of $9.
5 million in concession fees, which dropped from $12.7 million in fiscal 2022 to $3.2 million in 2023, the OPA said.
Total airport revenues decreased by $22.9 million in fiscal 2023, as GIAA generated total revenues of $61 million compared to $83.9 million in 2022, according to the OPA report.
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