Item No. 10b_supp
Meeting Date: April 27, 2021
Intermediate Lien Revenue Bonds
April 27, 2021


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Request Introduction of Resolution No. 3786
Sale and Issuance of Intermediate Lien Revenue Bonds
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)
Private Activity, non-AMT  no income tax for investors, special exception
during financial crisis and limited to refunding bonds issued in 2010
Taxable  investors subject to regular federal income tax

2

Fund Airport Capital Investments
Funding for approximately
$600 million of spending
Project spending must be
authorized prior to use of
bond proceeds
Most projects will be
funded with Private               Projects Include:
Activity bonds and subject          Completion of International Arrivals
Facility and North Satellite
to AMT
Continuation of Baggage Optimization and
Airfield Pavement Replacement
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Refund Existing Bonds
Refunding Candidates               Total Principal ($)          Tax Status
PFC Revenue Bonds, Series 2010A                        51,110,000 Governmental (Non-AMT)
Intermediate Lien Revenue Bonds, Series 2010B          184,995,000 Private Activity (Non-AMT)
Intermediate Lien Revenue Bonds, Series 2010C            48,400,000 Private Activity (AMT)
Commercial Paper (CP)                                  20,805,000 multiple
TOTAL                                                 305,310,000
Bonds will be refunded for debt service savings due to lower interest rates 
estimated present value saving of $25 million
Due to postponement of the 2020 bond issue, Commercial Paper was used
to temporarily refunded bonds

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Resolution No. 3786
Similar in all material respect to        Delegation Limits:
other Intermediate Lien                Maximum Par Amount: $950
resolutions                              million
Pursuant to Intermediate Lien              Maximum Interest Rate:
Master Resolution                           Tax-exempt series 4%
Provides delegation to Executive               Taxable series 5%
Director to approve bond sale              Bond sale must occur within six
Provides funding for related               months of adoption
costs                                  Exceeding limits requires further
authorization
Bonds will be sold by Port
underwriting team
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ADDITIONAL INFORMATION


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The Port Primarily Uses Revenue Bonds For CIP
Funding
Type of Debt based on Security Pledge
General Obligation  secured by the
Port's full faith and credit and paid from
the tax levy
Revenue bonds  secured by all of the
Port's net operating revenues
Special revenue bonds  secured by a
specific revenue source:
PFCs
Fuel Facility lease

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Port Revenue Bonds - Three Liens
Priority of Payment from Gross         Revenue Liens     Primary Use                        3/31/21 $M
Operating Revenues                  First Lien          Non-Airport or in adverse markets          243.5
1   Operating Expenses                 Intermediate Lien  Airport funding; includes Airport         2,895.8
2   First Lien Obligations                                 features like using PFCs and CFCs to
off-set debt service
3   Intermediate Lien Obligations
Subordinate Lien   Variable rate debt backed by bank           226.0
4   Subordinate Lien Obligations                           credit facilities; includes CP
5   Capital Investments                                                                     3,365.3

The Airport accounts for 86% of all Port debt and 93% of revenue bond debt

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