Los Angeles Airport Sells Bonds to Buyers Betting on Rebound
- Passengers dropped by 75% last year over same period in 2019
- LAX seen ‘clearly as one of the winners’ in airport sector
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Los Angeles International Airport increased the size of its bond sale Wednesday to about $900 million, showing investors’ confidence in its ability to weather the turbulence from the pandemic-related shutdowns, as well as their eagerness for yield.
At the airport’s last sale in August, some buyers balked, leaving the underwriter Goldman Sachs saddled with unsold bonds. This time, though, the new administration of President Joe Biden is pledging speedier shipments of coronavirus vaccines -- which were authorized for emergency use in December -- and investors are clamoring to own debt from issuers poised for a rebound in a post-Covid landscape.