SUBJECT:
An Ordinance relating to the issuance of Airport System Revenue Obligations and providing for the security and payment thereof; determining that such Ordinance be deemed the Master Ordinance for Airport System Revenue Obligations; Confirming and making certain covenants related thereto; Approving other related procedures and provisions; and making certain findings and other declarations necessary and incidental thereto.
RECOMMENDATION:
An Ordinance relating to the issuance of Airport System Revenue Obligations and providing for the security and payment thereof; determining that such Ordinance be deemed the Master Ordinance for Airport System Revenue Obligations; Confirming and making certain covenants related thereto; Approving other related procedures and provisions; and making certain findings and other declarations necessary and incidental thereto.
SPECIFIC EXPLANATION:
The Finance Working Group (the “FWG”) is recommending the adoption of this ordinance for the purpose of incorporating the common provisions and covenants contained in the Prior Ordinances into one master ordinance (this “Master Ordinance”) and to provide for the issuance from time to time of additional senior lien, subordinate lien and inferior lien obligations secured by and payable from the Net Revenues of the Airport System pursuant to one or more ordinances supplemental to this Master Ordinance.
This framework will allow for the issuance of the proposed Houston Airport System Senior Lien Revenue and Refunding Bonds, Series 2016 (“HAS Series 2016 Bonds”) and other future bond issuances through supplemental ordinances adopted from time to time by City Council, each containing the specific authorization for the future financing.
The supplemental ordinance for the 2016 Bonds is described in a separate RCA.
Recommendation
This transaction was presented to the Budget and Fiscal Affairs Committee on April 5th 2016.
The Finance Working Group recommends the HAS Series 2016A Bonds be issued through a negotiated financing with Bank of America serving as book running manager along with Citigroup and Ramirez & Co. as co-senior managers. Fidelity, Mesirow Financial and Siebert Brandford Shank & Co. are recommended as co-managers. Bracewell LLP and Colon Law Firm are recommended as co-bond counsel along with Norton Rose Fulbright, LLP and West & Associates, LLP as co-disclosure counsel.