Intermediate Lien Revenue & Refunding Bonds
Series 2025
May 27, 2025
1
Item No. 8c supp________
Meeting Date: May 27, 2025
Adoption of Resolution No. 3837
• 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 $3.4
billion of Airport capital investments from 2025-2029
– 2025 Revenue Bonds to provide partial funding
• 2025 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
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• Refund outstanding revenue refunding
bonds issued in 2016 (originally issued in
2000)
• Estimated present value savings if the
savings targets are met is ~$1.4 million
Refund Existing Bonds
~$69 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
~$700 million
(1)
(1) estimate
Fund Airport Capital Investments
Projects include:
•
C Concourse Expansion
• SEA Gateway Project
• S Concourse Evolution
• Continuation of Baggage Handling System
Optimization and Airfield Pavement Replacement
• A Concourse Expansion
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. 3837
• 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 Morgan Stanley
• Delegation Limits:
– Maximum Par Amount: $950 million
– Maximum Interest Rates:
• 6.5% - Tax Exempt Bonds
• 7.0% - Taxable Bonds (if needed)
– Bond sale must occur by May 27, 2026
– Exceeding limits requires further authorization
• 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 July 9-10
th
• Bond sale scheduled for August 5
th
• Bond closing scheduled for August 21
st
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