Total Loan Amount: $35 million - $45 million USD
Borrower: Hawaii Department of Transportation - Airports Division
Guarantor: Hawaii Department of Transportation - Airports Division guarantees repayment
Project Details:
l Part of Hawaii's $2.3 billion airport modernization program, which is expected to be completed in 2021.
l The 12-year airport modernization program will allow airports in Hawaii to accommodate the surge in baggage volume resulting from increased air traffic, as well as meet high airport security requirements and passenger needs.
Honolulu International Airport Hangar and Cargo Facility (the "Project")
l Construction of a new cargo facility and hangar at Honolulu International Airport on Elliot Street.
Includes cargo transport and scanning areas for scheduled flights, logistics office areas, and public service areas for loading/unloading.
Most aircraft gates and facilities are over 30 years old and must be replaced with newer, more efficient equipment.
Aircraft Maintenance Facility: Maintenance facilities include aircraft maintenance hangars, work areas, parts storage areas, fleet maintenance yards, central receiving areas, and logistics staff offices.
Employee Parking Lot: Includes parking spaces, security fencing, security checkpoints, and bus shelters.
Total project budget is approximately $78 million USD.
Will construct a 60,000-square-foot steel-frame cargo building and 50,000 square yards of apron and taxiway to support wide-body aircraft such as the Airbus A380.
The new cargo building will consolidate all cargo operations into one building to improve efficiency.
Hawaiian Airlines will sign a 35-year lease for the hangar and cargo facility.
Achieve LEED green building and sustainability standards.
Existing cargo facilities will be repurposed for a future heliport.
Overview of the State of Hawaii:
l Hawaii became the 50th state of the United States in 1959.
l Home to the capital of Hawaii - Honolulu and Waikiki.
l Accounts for the majority of Hawaii's population of 905,266.
l Home to Pearl Harbor.
l 597 square miles.
l Oahu - the third largest island in the Hawaiian archipelago.
Hawaii Department of Transportation (HDOT):
l State government agency overseeing Hawaii's transportation operations, divided into three divisions (Airports, Harbors, Highways).
l Airports Division
Agency that develops, manages, and maintains global air transportation.
The Airports Division operates as a single-system agency under the Hawaii Department of Transportation.
Established on July 1, 1961, to assume the operations and business of the Hawaii Aeronautics Commission.
Holds jurisdiction over all airports and aviation facilities in the State of Hawaii, as well as general oversight of intrastate aviation.
Currently operates and manages 15 airports statewide.
Composed of five staff offices and four district offices.
Issued approximately $645 million in revenue bonds to fund the state airport modernization program and refinance existing debt.
Issued at an interest rate of 4.89%.
Honolulu International Airport (HNL):
One of the largest and busiest airports in the world.
Approximately 19 million passengers arrived, departed, or transited through here in 2008.
Flights from 27 international and U.S. domestic airlines, three inter-island airlines, and four charter airlines operate here.
Must also provide related facilities for commercial activities connecting international, domestic, and statewide travel. Serves as a bridge connecting the U.S. with important commercial partners China and Japan.
Managed and operated by the Hawaii Department of Transportation.
Total passenger arrivals and departures in 2008 were 20,808,838.
Covers 4,520 acres.
Much larger than the tourist destination of Waikiki.
Four operational runways, including the first 12,000-foot runway built entirely on the ocean.
The airport grounds contain eight federal government units, retail stores, restaurants and bars, business centers, insurance companies, currency exchange, gas stations, detention facilities, post offices, and highways.
15,000 people work at the airport daily, and another 20,000 make a living based on airport activities.
Honolulu International Airport has 550 employees.
Manages two aircraft rescue and firefighting units and is adjacent to Hickam Air Force Base.
Hawaiian Airlines
l Ranked among the top in the 2008 annual airline quality ratings.
l 81 years of service experience; the largest and longest-serving airline, and the largest carrier providing service from the U.S. mainland to Hawaii.
Merged with aviation pioneer Inter-Island Airways on January 30, 1929, and renamed Hawaiian Airlines on October 1, 1941.
A subsidiary of Hawaiian Holdings, Inc.
The 11th largest commercial airline in the United States.
Main hub is Honolulu International Airport; secondary hub is Kahului Airport on Maui.
Fleet includes 34 aircraft in service and 9 pending delivery.
Demand for New Air Cargo Facilities
l Hawaii's growing number of tourists and population require more space for cargo, baggage, etc.
Passenger traffic is continuously increasing, and the demand for passenger and cargo terminals is rising rapidly.
Other islands lack adequate infrastructure.
l Airport infrastructure has reached its renewal age.
l Need to comply with high-standard security procedures required by new 9/11 cargo and baggage regulations.
l Increase the introduction, maintenance, and emphasis on environmental, social, and cultural elements.
Financial Information - Hawaii Department of Transportation
l Operating Revenue
2009 - $265,675,867
2008 - $244,377,274
l Net Assets
2009 - $1,571,275,416
2008 - $1,582,434,681
Credit Rating:
l As of June 30, 2009, the amount of outstanding revenue bonds was $589,740,000, compared to $610,880,000 in outstanding revenue bonds as of June 30, 2008.
[Notes]:
1. All project information is subject to the official offering documents;
2. EB-5 investment involves risks, and applicants should make independent judgments.
