First & Intermediate Lien Revenue Refunding Bonds
Series 2026
June 9, 2026
1
Item No. 10a_supp______
Meeting Date: June 9, 2026
Introduction of Resolution No. 3850
• Sale and Issuance of First Lien Revenue Refunding Bonds, Series 2026
– Refund outstanding 2016B First Lien Bonds for debt service savings
– 2016B First Lien Bonds refunded prior 2007B First Lien Bonds, which were used to fund
various Seaport capital investments
• Estimated present value savings if the savings targets are met is ~$2.0
million
• 2026 bonds issued as Tax-Exempt, Private Activity Bonds
– Not subject to regular federal income tax; subject to Alternative Minimum Tax (AMT)
2
Additional Background
• Updated Port-wide forecasted debt service coverage levels decreased since POF
– Decision to expedite the SCE project means debt required to be issued sooner, driving down coverage
• Refunding provides an opportunity to restructure future debt service and create financial
flexibility
• Evaluating option to contribute General Fund cash toward 2016B Refunding (Seaport)
– This effectively means we are paying down Seaport debt now that would otherwise be due in 2031-2032
– Reduces the amount of refunding bonds needed thus lowering future debt service and increasing DS coverage in
certain years
– Cash contribution also results in lower overall debt service (interest) costs; increases long-term capital capacity and
aligns with the Ports resource consciousness effort
• Cash contribution does not adversely impact the current Seaport capital plan and funding
– General Fund cash balance is currently well above target and can be deployed early to pay debt
• Staff recommends that up to $25.0 million may be contributed toward the refunding
– Actual amount and specific maturities to be determined closer to the bond sale in early August
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Introduction of Resolution No. 3849
• Sale & Issuance of Intermediate Lien Revenue Refunding Bonds, Series 2026
– Refund outstanding 2015C and 2016 Intermediate Lien Bonds for debt service savings
– 2015C and 2016 Bonds funded or refunded capital investments at the airport
• Estimated present value savings if the savings targets are met is ~$8.3 million
• 2026 Intermediate Lien Bonds expected to be issued in two series:
– Tax-Exempt, Governmental Bonds
• Investors are not subject to regular federal income tax
– Tax-Exempt, Private Activity Bonds
• Investors not subject to regular federal income tax, but subject to Alternative
Minimum Tax (AMT)
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Resolutions No. 3849 & 3850
• Similar in all material respect to other
First Lien & Intermediate Lien
resolutions
– Pursuant to their respective Lien Master
Resolutions
– Provides approval delegation to Executive
Director, Deputy Executive Director or
Chief Financial Officer
• Bonds will be sold by Port
underwriting team led by Siebert
Williams Shank & Co.
• Delegation Limits:
– 2026 Intermediate Lien Bonds
• Maximum Par Amount: $250 million
• Maximum Interest Rate: 4.5%
– 2026 First Lien Bonds
• Maximum Par Amount: $70 million
• Maximum Interest Rate: 4.5%
– Bond sale must occur by June 23, 2027
– Exceeding limits requires further
authorization
– Provides funding for bond issuance costs
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Next Steps
• Meetings with credit rating agencies July 6-10
th
• Bond sale scheduled for August 5
th
• Bond closing scheduled for August 20
th
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Appendix - Original Bond Funded Projects
2015C and 2016 Intermediate Lien
(Airport Projects)
2015C
• North Satellite renovation
• Checked baggage improvements
• Electrical infrastructure upgrades
• Gate improvements and reconfiguration
• Cargo 5 Hardstand & other airport projects
2016
• Third Runway Construction
• Airfield Pavement
• Airport Communication Systems
• Other airport projects
2016B First Lien
(Seaport Projects)
• Terminal 91 New Cruise Terminal Redevelopment
• Pier 91 development
• Terminal 25/30 upgrades
• Terminal 18 Apron & Fender Upgrades
• Terminal 5 improvements
• Terminal 86 grain facility improvements
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Note: 2016B First Bonds refunded 2007B First Lien BondsNote: 2016 Intermediate Lien Bonds refunded bonds originally issued in 2000
