PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7d 
STAFF BRIEFING 
Date of Meeting     April 28, 2015 
DATE:    April 20, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Elizabeth Morrison, Director, Corporate Finance 
SUBJECT:  2015 Intermediate Lien Revenue and Refunding Bonds 
SYNOPSIS 
Staff is currently working on an Intermediate Lien Revenue bond issue to achieve two
purposes.  First, the bonds will refund currently outstanding bonds for debt service
savings. Second, the bonds will provide funding for a portion of the Airport capital
program. The 2015-2019 Draft Plan of Finance identified the need for bond funding
$1.16 billion of the $1.72 billion five-year Airport capital plan, including a bond issue in
2015. The current estimated amount of the bond issue (including the refunding bonds) is 
approximately $650 million. Port staff will return to the Commission in June with a
request for First and Second reading of a bond resolution authorizing the sale of bonds. 
BACKGROUND 
As part of the Port's debt management program, the Port monitors opportunities to reduce
debt service. In 2005, the Port issued Intermediate Lien Revenue Bonds to fund Airport
projects; those bonds are callable on June 1, 2015. Current low interest rates provide a
favorable refunding opportunity. The outstanding amount is $319 million and estimated 
present value savings are currently $30 million. The refunding bonds w ill be structured
for level savings, which will result in reduced annual debt service with the same final
maturity date as the 2005 Bonds. 
In addition, the 2015 bonds will include an estimated $300 million for project spending
on the Airport's capital program. The Port has typically issued bonds for approximately
18 to 24 months of spending on a group of current projects  and may include
reimbursement for spending that has already occurred. This approach minimizes the
amount of bonds needed to pay capitalized interest prior to facility completion. 
The 2015 bonds will fund a portion of several projects including reimbursing the Airport
Development Fund for some prior spending; cash, grants, passenger facility charges and
future bond proceeds will also provide funding for these projects. Bond proceeds may
only be spent on projects that have received proper authorization; the issuance of bonds
does not authorize project spending.  The following are some of the more significant 
projects that are expected to use bond proceeds. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 20, 2015 
Page 2 of 2 
Center runway replacement 
NorthStar 
Aircraft remain-overnight (RON) parking on the former USPS site 
B2 expansion for Delta club 
Vertical Conveyance Modernization 
Airfield Pavement Program 
Passenger loading bridge renewal 
This is the first new money Revenue bond issue since 2010. When the Port issues new
money Revenue bonds (as opposed to refunding bonds), the Port provides a financial
forecast in its bond disclosure; the forecast provides investors with the Port's current best
thinking on future operating, capital and funding plans. Because investors are relying on
the disclosure information, it must be based on reasonable assumptions; however, it is a
forecast and subject to change. The forecast will include not only the Airport, but also
the Seaport Alliance and other Port businesses. 
The total bond amount will also include proceeds sufficient to pay cost of issuance, fund
the required debt service reserve and pay for capitalized interest as appropriate. The
bonds are expected to have level debt service. Port staff is currently working on the bond
resolution and disclosure documents and will return to the Commission in June for First
and Second reading of the bond resolution; more detail and updates on the use of bond
proceeds and the size of the issue will be provided at that time. 
ATTACHMENTS TO THIS BRIEFING 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 28, 2014  Briefing on 2015-2019 Draft Plan of Finance