Houston to sell more airport bonds backed by junk-rated United
Houston Airport System
Houston is teeing up a third airport system special facilities revenue bond sale this year for junk-rated United Airlines, with an up to $850 million deal approved Wednesday by the city council.
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The bonds, scheduled to price in early November, come after the city’s two other high-yield debt offerings for United facilities faced tough market conditions.
The latest issuance will complete $2 billion in special facilities bond financing backed by the airline for George Bush Intercontinental Airport’s Terminal B expansion project. Houston sold
The anticipated true interest cost for the upcoming tax-exempt bonds backed by United’s lease payments is 5.8% to 6.2%, Houston Finance Director Melissa Dubowski told the council’s Budget and Fiscal Affairs Committee on Sept. 29.
The city
A BofA Securities-led team priced $105.88 million of 2036 term bonds for a United ground services equipment facility with a 4.55% yield and 5.5% coupon and $151.18 million of 2035 term bonds for a catering operations facility with a 4.67% yield and 5.5% coupon, according to the official statements.
The original November financing featured larger tranches — about $180 million and $220 million — as well as a third piece, $277.4 million of revenue refunding bonds that successfully priced and attracted strong demand.
United is the largest airline at Houston’s main airport, responsible for 73% of the total enplaned passengers in 2025 when including United’s regional carriers.
