Professional Documents
Culture Documents
FINANCIAL SECTION
December 31, 2021 and 2020
Some of these bonds may be periodically remarketed to banks and the bank owners and can change before
reaching maturity or are otherwise paid. These are certain events which could result in a higher interest
rate and/or an acceleration of amounts due on these bonds. These events are described in the event filed
on the Municipal Securities Rulemaking Boards (MSRB) Electronic Municipal Market Access (EMMA) site
using the following links:
For some bond series, the Reimbursement Agreements or Note Purchase Agreements are not available on
EMMA. These bonds series have the same event of default requirements as other bond series. Below is a
list of the similar event of defaults sections within the Credit Agreements as of December 31, 2021 and
December 31, 2020:
Section 5.10 2008B(1) Section 6.10 2021A(1) Section 5.7 2015A(2) Section 6.10 2021 Interim Note (Loan)
Section 5.11 1992F(1) Section 6.12 2021B(1) Section 5.8 2019A(1) Section 6.12 2021C
Section 5.13 1992G(1) Section 6.14(b) Section 5.10(b) 2019B(1) Section 6.14(b)
Section 5.15(b) 2002C(1) Section 6.16 Section 6.1(a) Section 6.16
Section 5.17 2009C(1) Section 7.1(a) Section 6.1(b) Section 7.1(a)
Section 5.22 2007G1(2) Section 7.1(b) Section 6.1(e) Section 7.1(b)
Section 5.25 2007G2(2)
Section 5.26
Section 6.1(a)
Section 6.1(b)
Section 6.1(f)
Section 6.1(j)
(1) Event of Default Sections of the Credit Agreement can be viewed on EMMA for language.
(2) Although details of the Event of Default sections are not posted on EMMA, the related sections are posted
on EMMA for other bond series. There are no difference in the requirements of these bonds.
(1) Event of Default Sections of the Credit Agreement can be viewed on EMMA for language.
(2) Although details of the Event of Default sections are not posted on EMMA, the related sections are posted
on EMMA for other bond series. There are no difference in the requirements of these bonds.
As of December 31, 2021, and 2020, the Airport has not defaulted on any of the events of defaults.
Applicable spread:
The variable rate interest due on these bonds is contingent on the related index and the related Senior
Bond Ratings. If the Airport Senior Bond Rating adjusts so does the applicable spread basis points used to
calculate the interest due. Below are the applicable spreads for each variable rate Bond Series:
Refer to the EMMA posting noted above for detailed information regarding the Applicable Spread upon
Credit Ratings for each of the following Series: 2008B, 2009C, 1992F, 1992G, and 2002C. Although not
posted to EMMA, the Applicable Spread upon Credit Ratings for Series 2021A and 2021B is the same as
Series 2008B, 2009C, 1992F, 1992G, and 2002C.
For the Series 2008B, 2009C, 1992F, 1992G, 2002C, 2021A, and 2021B, in the event the Airport maintains
Senior Bond ratings from each of Moody’s, S&P and Fitch, known as the Rating Agencies, and two of such
Senior Bond ratings are equivalent, the Applicable Spread shall be based upon the Level in which the two
equivalent Senior Bond ratings appears; if Senior Bond Ratings are assigned by all three Rating Agencies
and no two such Senior Bond Ratings are equivalent, the Applicable Spread shall be based upon the Level
in which the middle Senior Bond Rating appears; and if the Senior Bond Ratings are assigned by only two
Rating Agencies and such Senior Bond Ratings are not equivalent, the Applicable Spread shall be based upon
the Level in which the lower Senior Bond Ratings appears. Any change in the Applicable Spread resulting
from a reduction, withdrawal, suspension or unavailability of a Senior Bond Rating shall be and become
effective as of and on the date of the announcement of the reduction, withdrawal, suspension or
unavailability of such Senior Bond Rating.
For Series 2007G1 & G2, in the event the Airport maintains Senior Bond ratings assigned by all three Rating
Agencies, the Applicable Spread shall be based upon the Level in which the lower of the two highest Senior
Bond Ratings appears; and if the Senior Bond Ratings are assigned by only two Rating Agencies and such
Senior Bond Ratings are no equivalent, the Applicable Spread shall be based upon the Level in which the
lower Senior Bond Ratings Appears. Any change in the Applicable Spread resulting from a reduction, which,
suspension or unavailability of a Senior Bond Rating shall be and become effective as of and on the date of
the announcement of the reduction, withdrawal, suspension or unavailability of such Senior Bond Rating.
Through maturity, the 2021 Interim Note has a fixed Applicable Spread rate of 0.11%.
Refer to the EMMA posting noted above for detailed information regarding the Applicable Spread upon
Credit Ratings for each of the following Series: 2008B, 2009C, 1992F, 1992G, and 2002C.
For the Series 2008B, 2009C, 1992F, 1992G, and 2002C, in the event the Airport maintains Senior Bond
ratings from each of Moody’s, S&P and Fitch, known as the Rating Agencies, and two of such Senior Bond
ratings are equivalent, the Applicable Spread shall be based upon the Level in which the two equivalent
Senior Bond ratings appears; if Senior Bond Ratings are assigned by all three Rating Agencies and no two
such Senior Bond Ratings are equivalent, the Applicable Spread shall be based upon the Level in which the
middle Senior Bond Rating appears; and if the Senior Bond Ratings are assigned by only two Rating Agencies
and such Senior Bond Ratings are not equivalent, the Applicable Spread shall be based upon the Level in
which the lower Senior Bond Ratings appears. Any change in the Applicable Spread resulting from a
reduction, withdrawal, suspension or unavailability of a Senior Bond Rating shall be and become effective
as of and on the date of the announcement of the reduction, withdrawal, suspension or unavailability of
such Senior Bond Rating.
For Series 2007G1 & G2, in the event the Airport maintains Senior Bond ratings assigned by all three Rating
Agencies, the Applicable Spread shall be based upon the Level in which the lower of the two highest Senior
Bond Ratings appears; and if the Senior Bond Ratings are assigned by only two Rating Agencies and such
Senior Bond Ratings are no equivalent, the Applicable Spread shall be based upon the Level in which the
lower Senior Bond Ratings Appears. Any change in the Applicable Spread resulting from a reduction, which,
suspension or unavailability of a Senior Bond Rating shall be and become effective as of and on the date of
the announcement of the reduction, withdrawal, suspension or unavailability of such Senior Bond Rating.
The Airport may issue additional parity and subordinate bonds, subject to certain coverage and other
provisions, for the purpose of acquiring, improving or equipping facilities related to the Airport.
Under the terms of the Bond Ordinance, all bond series (the Senior Bonds) are collateralized by a first lien
on the Net Revenues of the Airport. Under the terms of the Subordinate Bond Ordinance, outstanding
Commercial Paper is collateralized by Net Revenues of the Airport subordinate to the Senior Bonds.
The Airport is required by the Bond Ordinance to set and collect rates and charges sufficient, together with
other available funds, to provide for the payment of all operating and maintenance expenses for the current
fiscal year plus 125% of the aggregate principal and interest payments of the Senior Bonds for such fiscal
year prior to the issuance of additional bonds. Also, the Airport is required to maintain Minimum Bond
Reserves for both senior and subordinate lien bonds. On July 14, 2021, the City, for and on behalf of the
Airport, entered into a Bond Purchase and Exchange Agreements with Banc of America Preferred Funding
Corporation for the Series 1992F-G for the Series 2021A-B, respectively. With the execution of this Bond
Purchase and Exchange Agreement there were no longer any outstanding Airport System Revenue Bonds
issued prior to August 1, 2000. This adjusted the calculation of the Minimum Bond Reserve as defined within
the General Bond Ordinance and reduced the Minimum Bond Reserve amount as it applies to the senior
lien system revenue bonds. The City, for and on behalf of the Airport, filed a Voluntary Notice on EMMA
(see https://emma.msrb.org/P21480842-P21148170-P21561857.pdf). The Airport is in compliance with the
bond covenants listed in the bond ordinance.
The Airport has entered into interest rate swap agreements in order to protect against rising interest rates.
The 1999 and 2009A swap agreements all pay fixed–receive variable rate cash flow hedges, with the
variable payment from the counterparty based on the USD-SIFMA Municipal Swap Index and the variable
rate of the bonds. The rest of the Airport’s swap agreements are considered investment derivatives in
accordance with the provisions of GASB Statement No. 53, Accounting and Financial Reporting for
Derivative Instruments (GASB 53). Additionally, investment income on these derivatives has also been
recognized in accordance with GASB 53. The City does not enter into derivative transactions for investment
purposes, nor does the City Charter allow for the investment in derivative investments.
On October 28, 2020, the Airport issued the Airport System Revenue Bonds Series 2020A-1 (Non-AMT
Private Activity), Series 2020A-2 (Non-AMT Governmental), Series 2020B-1 (AMT), Series 2020B-2 (AMT),
and Series 2020C (Taxable) for $95.3 million, $60.5 million, $37.5 million, $24.1 million, and $411.5 million,
respectively. A portion of the bond proceeds were used to fully terminated the 2008B Swap Agreement
with Loop Financial Products I, LLC at a cost of $9.6 million.
The fair value balances and notional amounts of the swaps outstanding at December 31, 2021 and 2020
and the changes in the fair value of such swaps for the periods then ended, are as follows ($ in thousands):
Total $ (6,986)
(1) Swaps associated with Series 2009C, 2008B and a portion of the 2002C Bonds
(2) A portion of the Series 2002C bonds are additionally associated with these swaps
(3) Previously associated with 2007D and 2017A