Thursday, August 7, 2025 at 10:00 AM - For Immediate Release
SMF Successfully Completes $415 Million Bond Issuance to Support SMForward
Sacramento, CA – The Sacramento County Department of Airports (SCDA) is pleased to announce the successful sale of $415 million in General Airport Revenue Bonds (GARBs), marking a significant step in financing its ambitious $1.4 billion SMForward infrastructure improvement program at Sacramento International Airport (SMF).
The $415 million bond issuance will finance key components of the modernization program, including the 6-gate expansion of Concourse B and baggage handling improvements in Terminals A and B.
The bond issuance received strong investor interest, at 5.4 times oversubscribed, demonstrating the appeal of airport bonds in the municipal bond market. The deal was well received by investors, realizing an all-in true interest cost of 4.85 percent.
This issuance also created a landmark in Sacramento County finance by including a tender offer refunding of $92 million in existing debt which garnered 33.8 percent participation. The tender offer saved the Airport $6.5 million in net present value (NPV) savings.
“This bond issuance demonstrates that creative strategy saves us money,” said Sacramento County’s Director of Airports, Cindy Nichol. “Issuing a tender offer and securing new money at a low interest rate enables us to be fiscally responsible and stretch our dollars further.”
Airport bonds, particularly General Airport Revenue Bonds (GARBs), are a key financial instrument used across the U.S. to finance essential infrastructure, providing investors with secure returns while supporting the broader economy. SCDA’s bond issuance not only supports airport growth but also offers a unique opportunity to enhance SMF’s facilities that serve travelers in the airport’s seven-county primary service area.
SMF team members presented the advantages of these investments on a “roadshow” to investment firms prior to the offering. Nine of the 11 investors they met with placed orders of approximately $490 million, showcasing the success of this personalized approach.
“As an enterprise department of Sacramento County, the Airport is self-financed,” said Chris Wimsatt, Assistant Director of Sacramento County’s Department of Airports. “It is a great benefit to our organization, our customers, and our airline partners to keep our costs as low as we can as we build for the future.”
Bond Sale Highlights
- Bond Type: General Airport Revenue Bonds (GARBs)
- Total Issuance: $415 million in Senior and Subordinate new money AMT bonds
- Investor Demand: Despite market challenges, the bond sale attracted significant interest from a wide range of investors, including insurance companies, pension funds, and mutual fund managers. The bonds were offered during a week of heavy supply, however, that was offset by improvements to the municipal bond market in the prior week.
- The aggregate All-in True Interest Cost was a competitive 4.85 percent, demonstrating SMF’s ability to secure favorable financing terms in a dynamic market.
- The tender offer refunding garnering 33.8 percent participation generating $6.5 million NPV savings (7.02 percent).
The Sacramento County Department of Airports is responsible for planning, developing, operating and maintaining the county’s four airports: Sacramento International Airport, Executive Airport, Mather Airport and Franklin Field. Sacramento International Airport offers more than 155 daily nonstop flights on 12 domestic and international carriers to 36 destinations. The regional economic impact of the Sacramento County Department of Airports is more than $4 billion annually. For more information, visit sacramento.aero.