Transaction Establishes New Financing Vehicle for AFCO
Dulles, VA. – August 28, 2019 – An affiliate of Aviation Facilities Company Management, LLC (“AFCO”) recently closed on more than $36 million in financing for a new air cargo facility at Baltimore Washington Thurgood Marshall International Airport (“BWI”). The transaction also established AFCO Airport Real Estate Group (“AFCO AREG”), a new financing vehicle for AFCO.
AFCO will use the funds to construct a 200,000 square-foot air cargo facility, 450,000 square feet of aircraft parking apron, and related infrastructure at BWI, which will be completed this coming October.
The financing comes from the sale of Series 2019 Airport Revenue Bonds issued by the Maryland Economic Development Corporation as part of an expandable Obligated Group structure. The bonds have been assigned a rating of BBB (Stable) by Standard & Poor’s. Initial properties in the Obligated Group include the BWI project and other AFCO properties at BWI, Dallas/Fort Worth International Airport and Mather Field in Sacramento, CA. AFCO AREG was created to fund the BWI project and to provide a source of debt financing for AFCO’s ongoing portfolio growth program that is focused on the acquisition and development of on-airport projects throughout the U.S.
“We are very pleased to successfully close on the bond sale and establish this creative financing vehicle,” said Chuck Stipancic, President & CEO of AFCO. “Not only was the financing important for our BWI project, but AFCO AREG is another tool in our toolbox for delivering efficient, flexible and cost-effective financing solutions on future airport infrastructure projects.”
The Series 2019 Bonds were underwritten by Goldman Sachs & Co. LLC.
About AFCO
AFCO is a recognized industry leader in the development and management of airports and airport infrastructure. With broad, best-in-class capabilities and deep experience, AFCO provides an unparalleled level of service, comprehensive solutions and value to its clients including airports, municipalities, commercial and cargo airlines, general aviation and a wide variety of other airport users. AFCO was acquired by West Street Infrastructure Partners III, a family of infrastructure funds managed by the Merchant Banking Division of Goldman Sachs Group, Inc., in July of 2018.
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