TAMPA – Tampa International Airport board of directors announce the approval of an agreement with SunTrust Bank for a revolving credit agreement. The Authority initially will utilize the credit agreement to refinance $85.2 million outstanding under its commercial paper program.
The negotiated terms of the agreement include a seven year term, variable rate interest and a provision that provides the Authority the ability to convert to a fixed rate of interest in the future. The variable rate of interest is estimated at 1.2 percent under current market conditions.
“The Airport is fortunate to team with SunTrust on this important financing arrangement which provides benefits to stakeholders of both organizations,” stated Joe Lopano, Chief Executive Officer, Tampa International Airport. “The ability to take advantage of current low interest rates contributes to the continued sound financial management of the Airport.”
The Authority’s special counsel for this transaction was Holland & Knight LLP and Public Financial Management Inc. served as the Authority’s financial advisor.
“The Aviation Authority is an important driver of economic growth in our region. We value our relationship with the Authority and are pleased to help with its financing needs,” stated Adam L. Horn, First Vice President, Not-For-Profit & Government Banking, SunTrust Banks, Inc.
The Aviation Authority began in 1945 as an independent special district governed by the Hillsborough County Aviation Authority Act. The act provides the Authority with exclusive jurisdiction, control, supervision, and management over all public airports in Hillsborough County. Although empowered to levy ad valorem property taxes, the Authority has not collected any tax funds since 1973.
Following Florida law, the Authority owns and operates Tampa International Airport and three general aviation airports – Peter O. Knight, Tampa Executive and Plant City.