Item No. 10a supp
Meeting Date: June 11, 2024
Intermediate Lien Revenue & Refunding Bonds
Series 2024
June 11, 2024


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         Introduction of Resolution No. 3826
•  Sale and Issuance of Intermediate Lien Revenue & Refunding Bonds
– Fund Airport capital investments
– Refund outstanding debt for savings
•  Draft Plan of Finance anticipates the use of new revenue bonds to fund $3.6 billion
of Airport capital investments from 2024-2028
– 2024 Revenue Bonds to provide partial funding
•  2024 bonds issued in multiple series based on federal tax status:
– Governmental Bonds – no income tax for investors
– Private Activity Bonds – no regular tax, but subject to Alternative Minimum Tax (AMT)
– Taxable Bonds (if needed) – investors subject to regular federal income tax

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               Purpose of the Bonds
Refund for Savings                   Funding for Capital Projects
~$272 million (1)                        ~$535 million (1)
•   Refund outstanding revenue bonds                    •   Partial funding of Airport CIP, as outlined in
issued in 2013 and 2015                              the Draft Plan of Finance
•   Current estimate of NPV savings on the                •   Revenue bonds are the primary funding
refunding is ~$9.2 million                               source for Airport capital investments

(1) estimate

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          Fund Airport Capital Investments
Projects include:
•   SEA Gateway Project
•   C Concourse Expansion
•   S Concourse Evolution
•   Continuation of Baggage Handling System
Optimization and Airfield Pavement Replacement
•   A Concourse Expansion
•   MT Low Voltage System Upgrade
Some flexibility to redirect bond proceeds to other
Airport capital projects, subject to meeting project
eligibility requirements (federal tax)
Actual spending on projects is subject to
appropriate authorization

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                Resolution No. 3826
•  Similar in all material respect to other         •  Delegation Limits:
Intermediate Lien resolutions                   – Maximum Par Amount: $850 million
– Pursuant to Intermediate Lien Master             – Maximum Interest Rates:
Resolution                                              • 6.0% - Tax Exempt Bonds
– Provides approval delegation to Executive             • 7.0% - Taxable Bonds (if needed)
Director, Deputy Executive Director or Chief
Financial Officer                                         – Bond sale must occur by June 25, 2025
– Exceeding limits requires further authorization
•  Bonds will be sold by Port underwriting
team led by Bank of America                •   Provides funding for
–  Bond issuance costs
–  Capitalized interest during construction
–  Contribution to the debt service reserve

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                    Next Steps
• Meetings with credit rating agencies June 24-25th
• Adoption of Resolution No. 3826 scheduled for June 25th
• Bond sale scheduled for August 1st


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