"Logan Bond Deal to Boost Boston Fuel Network"

Tuesday, March 13, 2007

$112m bond deal to boost jet fuel network
By Peter J. Howe
The Boston (MA) Globe


Logan International Airport officials are planning a $112 million bond 
deal to upgrade the airport jet-fuel supply network and refinance old bonds.

The Massachusetts Port Authority, which runs Logan, has scheduled a 
hearing tomorrow morning at the airport on the proposal. It involves 
bonds being issued through Massport on behalf of a company called 
BOSFUEL, an airline-owned consortium founded in 1997 that runs a 
communal jet fuel supply system that dispenses about 360 million gallons 
of fuel annually.

About $15.6 million of bond proceeds would be used to replace fuel lines 
in and around terminals B and C to make them safer and reduce possible 
environmental hazards from fuel leaks. Another $96.1 million would be 
used to retire BOSFUEL bonds issued 10 years ago, which Massport 
predicts could save $13 million in interest and debt-service expenses. 
Fees that airlines pay BOSFUEL for supplying them jet fuel would pay off 
the bonds.

Subject to Massport's board approving the deal Thursday, bonds could be 
sold later this month and the 1997 bonds redeemed in July. BOSFUEL is 
owned by 24 airlines in proportion to how much fuel they buy.
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