Adoption 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

Purpose of the Bonds

• Refund outstanding revenue bonds

issued in 2013 and 2015

• Current estimate of NPV savings on the

refunding is ~$9.2 million

Refund for Savings

~$272 million

(1)

• Partial funding of Airport CIP, as outlined in

the Draft Plan of Finance

• Revenue bonds are the primary funding

source for Airport capital investments

Funding for Capital Projects

~$535 million

(1)

(1) estimate

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

Resolution No. 3826

• Similar in all material respect to other

Intermediate Lien resolutions

– Pursuant to Intermediate Lien Master

Resolution

– Provides approval delegation to Executive

Director, Deputy Executive Director or Chief

Financial Officer

• Bonds will be sold by Port underwriting

team led by Bank of America

• Delegation Limits:

– Maximum Par Amount: $850 million

– Maximum Interest Rates:

• 6.0% - Tax Exempt Bonds

• 7.0% - Taxable Bonds (if needed)

– Bond sale must occur by June 25, 2025

– Exceeding limits requires further authorization

• Provides funding for

– Bond issuance costs

– Capitalized interest during construction

– Contribution to the debt service reserve

Next Steps

• Meetings with credit rating agencies June 24-25

• Bond sale scheduled for August 1

• Bond closing scheduled for August 15