Austin’s $1.2 Billion Airport Muni Deal Attracts Robust Demand

Austin drew solid investor interest this week for the roughly $1.2 billion in municipal bonds it sold on behalf of Austin-Bergstrom International Airport.

The revenue-backed debt sold on Tuesday. It included securities subject to the alternative minimum tax and due in 2036 that priced to yield 3.62%, or 66 basis points over benchmark munis, data compiled by Bloomberg show. That’s tighter than the spread of 84 basis points for similar-maturity AMT debt that the city issued late last year for the facility.

The latest deal drew more bids than the amount of securities offered, according to Jeffery Timlin, lead ...