Recent Financings

RAIC provides a cost effective alternative to other financing options. RAIC has no paid employees, and its sole business is to assist the City in financing its airports and heliports. As a result, RAIC does not charge an application fee or transaction fee, or any ongoing monitoring fees, although applicants are responsible for the payment of RAIC’s actual costs and expenses incurred in connection with the proposed financing, including certain ongoing administrative costs and expenses.

RAIC has participated in approximately 38 projects at Los Angeles International Airport (the “Airport”) and has issued airport facilities lease revenue bonds in an aggregate principal amount of approximately $1,410,857,000. RAIC has also served as the nominal borrower under approximately $1,590,000,000 in credit facilities.

Each project and its proposed financing or refinancing requires the approval of the City’s Department of Airports, which approval is subject to the assertion of jurisdiction by the City Council of Los Angeles. The financing or refinancing of each project is separately secured, as appropriate, and the funds, accounts, and security pledged to the payment of each project financing is not available for the payment of any other project financing.

In 2012, RAIC served as the conduit issuer in the offering of the Regional Airports Improvement Corporation Facilities Lease Refunding Revenue Bonds, Issue of 2012, LAXFUEL Corporation (Los Angeles International Airport) in the aggregate principal amount of $64,095,000. Proceeds of the offering were used to refund the outstanding principal amount of RAIC’s Facilities Lease Refunding Revenue Bonds, Issue of 2001, LAXFUEL Corporation (Los Angeles International Airport). LAXFUEL Corporation operates jet fuel receipt, storage, and distribution facilities at Los Angeles International Airport, and approximately 99% of all jet fuel delivered at the airport passes through LAXFUEL Corporation’s facilities.
In 2014, RAIC served as the conduit borrower on behalf of Southwest Airlines Co. (“Southwest”) under a US$340 million secured syndicated credit facility led by Wells Fargo Bank, National Association (“Wells Fargo”). Proceeds of the borrowing were used by Southwest to make over US$500 million in improvements to Southwest’s passenger terminal at Los Angeles International Airport, Terminal 1, including a new ticketing lobby, expanded concourse areas, a consolidated and expanded passenger security check point, and a new in-line baggage screening system.
In 2017, RAIC served as the conduit borrower on behalf of Delta Air Lines (“Delta”) under a US$800 million secured syndicated credit facility led by Wells Fargo. Proceeds of the borrowing will be used by Delta to renovate Delta’s passenger terminals at Los Angeles International Airport, Terminals 2 and 3 in connection with its US$1.9 billion Delta Sky Way project at LAX. The project will include a fully reconstructed lobby and upgraded Terminal 3 concourse, seamless partner connectivity, a secure connector between Terminals 2 and 3 and Tom Bradley International Terminal and new concessions.
In 2017, RAIC served as the conduit borrower on behalf of Southwest under a US$450 million secured syndicated credit facility led by Wells Fargo and U.S. Bank National Association. Proceeds of the borrowing will be used by Southwest to develop and construct a new facility between Terminals 1 and 2 at Los Angeles International Airport, at a cost of approximately US$490 million. Key features of the new facility will include a bus gate, two claim devices, additional ticket counters, skycap, security checkpoint and office space.

In 2018, RAIC served as the conduit borrower on behalf of LAXFUEL in the issuance and sale of US$42.8 million facilities lease revenue notes to finance, among other things, the construction and commission of four new jet fuel storage tanks at the Los Angeles International Airport. The new tanks will increase the supply of jet fuel on site from approximately three to more than four days’ worth of demand. The proceeds of the notes were also used to refund all of the remaining Lease Revenue Refunding Bonds, Issue of 2005, previously issued by RAIC on behalf of LAXFUEL.