Los Angeles Airport sells bonds to buyers betting on rebound

Los Angeles International Airport increased the size of its bond sale Wednesday to about $900m, 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. Given its strong balance sheet before the outbreak, Los Angeles’s airport is positioned well to absorb the drops in passengers and revenue, Terry Goode, a senior portfolio manager at Wells Capital Management, said before the sale. He pointed to the airport’s projection that it will have ample resources to cover debt service even if it takes five years for fliers to return to pre-pandemic levels. “If you’re going to be participating in the airport sector, LAX is one of your strongest credits,” said Goode, who was evaluating the new deal. “I would put LAX clearly as one of the winners.”<br/>