United Advances Houston Airport Projects Through $535 Million Bond Financing

United Airlines has secured more than $535 million in special facilities bond financing to support infrastructure investments at George Bush Intercontinental Airport (IAH), including terminal improvements and new operational facilities.

The financing package includes approximately $277.4 million in special facilities revenue refunding bonds and $257.1 million in special facilities revenue bonds issued by the City of Houston for the airline’s benefit.

According to transaction documents, proceeds from the refunding bonds will be used to refinance previous debt associated with passenger terminal improvements, construction and facility upgrades at IAH.

The new revenue bonds will fund the development, design, construction and equipping of a new catering operations facility and ground services equipment maintenance complex.

Once completed, United expects the catering facility to become the largest kitchen operation in its network, producing approximately 14,000 meals per day for airline operations.

The ground services equipment facility will replace the airline’s existing maintenance operation and provide additional capacity to support fleet growth at Houston while allowing maintenance work to move indoors during adverse weather conditions.

The investments support United’s continued expansion at George Bush Intercontinental Airport, one of the carrier’s largest hub operations and a key gateway for domestic and international service.

BofA Securities served as lead underwriter for the bond transactions, which were issued through the City of Houston’s special facilities financing program.