Board of Airports Commissioners Approves $225 Million Revenue Bonds for United Airlines Facility Expansion Improvements at LAX.LOS ANGELES--(BUSINESS WIRE)--Oct. 21, 1997--The Los Angeles Board of Airport Commissioners Tuesday approved the issuance of not-to-exceed $225 million of tax-exempt special facilities revenue bonds, Series A 1997 by the California Statewide Communities Development Authority (CSCDA CSCDA California Statewide Communities Development Authority (Walnut Creek) ). The bonds will finance expansion and improvements to United Airlines Inc.'s existing facilities in Terminals 6, 7 and 8 at Los Angeles International Airport “LAX” redirects here. For other uses, see LAX (disambiguation). “KLAX” redirects here. For other uses, see KLAX (disambiguation). Los Angeles International Airport (IATA: LAX, ICAO: KLAX, FAA LID: LAX (LAX). The improvements include construction of a new first-class passenger lounge and domestic baggage claim facilities, as well as renovation of existing customer lounges. The bonds also will be used to reimburse the air carrier for costs associated with construction and equipping the federal inspection services facility for international flights in Terminal 6 that were completed in June 1996. Los Angeles World Airports Los Angeles World Airports or LAWA is the airport oversight and operations department for the city of Los Angeles, California. This department owns and operates Los Angeles International Airport, LA/Ontario International Airport, Palmdale Regional Airport, and Van will own all of these projects and improvements. The bonds will be issued through the CSCDA, a joint powers agency of which the City of Los Angeles
By issuing bonds through the California Statewide Communities Development Authority, UAL's bondholders will benefit from both state and federal income tax exemptions. The bonds are unsecured general obligations of United Airlines and will be sold based on the full faith and credit of the air carrier. None of United's existing facilities or those to be constructed with the bonds will be used as security. In addition, LAWA LAWA Los Angeles World Airports LAWA Lawrence's Warbler (bird species) has no obligation to repay the bonds or make debt service payments, and both the Department and the City of Los Angeles will be indemnified from any liability for the financing. UAL UAL United Airlines (ICAO code) UAL Unified Accelerator Library (Brookhaven National Laboratory) UAL User Account Lockdown UAL User Access Layer UAL Universal Auxiliary Language UAL User Agent Layer is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to make payments to CSCDA sufficient to meet the debt service payments on the bonds. The bonds will be dated Nov. 1, 1997, and will be due and payable Oct. 1, 2034. There will be no amortization of the principal amount of the bonds over the life of the financing. Bondholders will receive interest payments semi-annually for the 37-year life of the financing. CONTACT: Los Angeles World Airports Nancy Suey Castles, 310/646-5260 |
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