First two phases of airport bond refinancing program nets nearly $16 million in savings.

LOS ANGELES--(BUSINESS WIRE)--June 20, 1995--The Los Angeles Department of Airports sold $175.6 million of revenue bonds Tuesday, June 20, by competitive sale.

The sale resulted in approximately $7.8 million in savings, for a total of $15.8 million. Two series of bonds were sold, Los Angeles International Airport Revenue Bonds, 1995 Series D, sold for a true interest cost of 5.7254 percent; and Los Angeles International Airport Refunding Revenue Bonds, 1995 Series E, sold for a true interest cost of 6.5926 percent.

Four bids were received for Series D, with Merrill Lynch submitting the winning bid. Three bids came in for Series E, with the winning bid going to Goldman Sachs. The Series D Bonds mature from 1996 to 2015 and were insured by Financial Guaranty Insurance Corp. Series E Bonds mature from 1996 to 2000 and were issued by AMBAC Indemnity Corp.

``The success of these bond sales can be directly attributed to the groundwork laid by Ted Stein, president of the Board of Airport Commissioners and John Driscoll, executive director of the Department of Airports,'' said financial adviser Karen Sisson. ``They have done an outstanding job of informing the financial community of the economic benefits derived from LAX.''

This sale was the second of three such actions undertaken by airport officials this year. Commission President Stein said: ``By selling these bonds, the Department remains a major player in the world marketplace and maintains its place in the world of business. Also, it continues to follow the plan laid out by Mayor Richard Riordan and endorsed by Department management to increase revenues.''

Prior bonds, issued in 1974, 1977 and 1989, are being refunded in order to eliminate existing restrictions on the sharing of airport revenues with the city's general fund and to allow for the separation on an accounting basis of the airports within the Department. The prior bonds had interest coupons ranging from 5.7 to 7 percent. Interest coupons on the bonds sold Tuesday range from 5 to 8.4 percent.

Earlier this year, Standard and Poor's assigned an ``AA-'' rating to the bonds and Moody's Investors Service assigned an ``Aa'' rating, making LAX one of the highest-rated airports in the nation.

Airports Executive Director Driscoll added, ``This is a continuation of our program to make LAX an even bigger asset to the residents of the City of Los Angeles.''

CONTACT: Nancy Niles, 310/646-5260