8h. Presentation

Issuance and Sale of Intermediate Lien Revenue and Refun

Item No. 8h_supp
Meeting Date: April 26, 2022
Intermediate Lien Revenue Bonds
April 26, 2022


Request Introduction of Resolution No. 3801
Sale and Issuance of Intermediate Lien Revenue Bonds
Fund Airport capital investments
Refund outstanding debt for savings
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  investors subject to regular federal income tax


Fund Airport Capital Investments
Funding for approximately
$560 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          Continuation of Baggage Optimization and
to AMT                        Airfield Pavement Replacement
North Main Terminal Redevelopment


Refund Existing Bonds
Refunding Candidates               Total Principal ($)
Intermediate Lien Revenue Bonds, Series 2012A          274,200,000
Intermediate Lien Revenue Bonds, Series 2012B            35,745,000
Intermediate Lien Revenue Bonds, Series 2013 (1)          99,785,000
TOTAL                                                 409,730,000
(1) Potential candidate
Bonds will be refunded for debt service savings due to lower interest
rates  estimated present value saving of
$25million 2012 bonds
$4 million 2013 bonds


Resolution No. 3801
Similar in all material respect to        Delegation Limits:
other Intermediate Lien
resolutions                             Maximum Par Amount: $1 billion
Pursuant to Intermediate Lien              Maximum Interest Rate: 4.5%
Master Resolution                        Bond sale must occur by December
Provides delegation to Executive             31, 2022
Director to approve bond sale              Exceeding limits requires further
Provides funding for related              authorization
Bonds will be sold by Port
underwriting team



The Port Primarily Uses Revenue Bonds For CIP
Type of Debt based on Security Pledge          Bonds by Security Type
General Obligation  secured by the                     as of Feb. 28, 2022
Port's full faith and credit and paid from                        1%    9%
the tax levy
Revenue bonds  secured by all of the
Port's net operating revenues
Special revenue bonds  secured by a
specific revenue source:                                    90%
Fuel Facility lease
G.O.    Revenue    Special Revenue


Port Revenue Bonds - Three Liens
Priority of Payment from Gross          Revenue Liens     Primary Use                        2/28/22 $M
Operating Revenues                  First Lien          Non-Airport or in adverse markets          211.8
1   Operating Expenses                 Intermediate Lien  Airport funding; includes Airport         3,307.9
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           168.3
4   Subordinate Lien Obligations                           credit facilities; includes CP
5   Capital Investments                                                                     3,688.0

The Airport accounts for 87% of all Port debt and 95% of revenue bond debt


Current Rate Environment  Municipal Market Data (MMD) Index
Current interest rates are
reasonable compared to average
rates over the past ten years
Short-term rates in the upper
end of the historical range
Long-term rates are below
Current rates are 1.25
percentage points higher than
the 2021 bond sale
MMD index is based on AAA General Obligation
Bonds; Port bonds bear higher interest rates than
the index


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