Item No. 8c supp________
Meeting Date: May 27, 2025

Intermediate Lien Revenue & Refunding Bonds
Series 2025
May 27, 2025

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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
Funding for Capital Projects
~$700 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

Refund Existing Bonds
~$69 million (1)
• 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

(1) estimate

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Fund Airport Capital Investments
Projects include:
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•
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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

• 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

- 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

•

Provides funding for
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-
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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 9-10th
• Bond sale scheduled for August 5th
• Bond closing scheduled for August 21st

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