Item No. 10a_supp______ Meeting Date: June 9, 2026 First & Intermediate Lien Revenue Refunding Bonds Series 2026 June 9, 2026 1 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 3 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) 4 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 • 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 • Bonds will be sold by Port underwriting team led by Siebert Williams Shank & Co. - Exceeding limits requires further authorization - Provides funding for bond issuance costs 5 Next Steps • Meetings with credit rating agencies July 6-10th • Bond sale scheduled for August 5th • Bond closing scheduled for August 20th 6 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 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 2016 • Third Runway Construction • Airfield Pavement • Airport Communication Systems • Other airport projects Note: 2016 Intermediate Lien Bonds refunded bonds originally issued in 2000 Note: 2016B First Bonds refunded 2007B First Lien Bonds 7