Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
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Current <strong>and</strong> Future Financings<br />
Capital Projects<br />
The <strong>Commission</strong> expects to issue Bonds in summer 2010 to finance other Capital Plan projects.<br />
Tender Bonds<br />
Since 2008, the <strong>Commission</strong> has issued several series <strong>of</strong> bonds that are subject to m<strong>and</strong>atory tender for<br />
purchase (collectively, the “M<strong>and</strong>atory Tender Bonds”) in order to refund <strong>and</strong> remarket variable rate debt as<br />
described below. The <strong>Commission</strong> expects to refund such M<strong>and</strong>atory Tender Bonds on their respective m<strong>and</strong>atory<br />
tender dates with long-term fixed rate bonds, variable rate bonds or other tender bonds.<br />
The m<strong>and</strong>atory tender dates for the M<strong>and</strong>atory Tender Bonds are set forth below:<br />
M<strong>and</strong>atory Principal<br />
Bonds Tender Date Amount<br />
Series 2008A-1 Notes May 1, 2010 $49,945,000<br />
Series 2008A-2 Notes May 1, 2010 50,000,000<br />
Series 2009A Bonds September 15, 2010 92,500,000<br />
Series 2009B Bonds September 15, 2010 82,500,000<br />
Series 2008A-3 Notes May 1, 2011 41,065,000<br />
Series 2008A-4 Notes May 1, 2012 25,460,000<br />
Series 2009D Bonds December 4, 2012 88,190,000<br />
If the <strong>Commission</strong> is unable to pay the purchase price <strong>of</strong> the M<strong>and</strong>atory Tender Bonds upon the respective<br />
m<strong>and</strong>atory tender date, such M<strong>and</strong>atory Tender Bonds would be subject to m<strong>and</strong>atory redemption. Payment <strong>of</strong> the<br />
principal <strong>of</strong> the M<strong>and</strong>atory Tender Bonds upon m<strong>and</strong>atory redemption is secured by a pledge <strong>of</strong>, lien on <strong>and</strong> security<br />
interest in Net Revenues on a parity with the pledge, lien <strong>and</strong> security interest securing all previously issued Bonds<br />
<strong>and</strong> any additional Bonds issued under the 1991 Master Resolution, including the 2010A Bonds. Failure to pay such<br />
M<strong>and</strong>atory Tender Bonds upon m<strong>and</strong>atory tender will constitute an Event <strong>of</strong> Default under the 1991 Master<br />
Resolution. See APPENDIX C–“SUMMARY OF CERTAIN PROVISIONS OF THE 1991 MASTER RESOLUTION–Events <strong>of</strong><br />
Default.” The <strong>Commission</strong> expects to refund each Series tender bonds on their respective m<strong>and</strong>atory date. See also<br />
“CERTAIN RISK FACTORS–<strong>Airport</strong> Market Access.”<br />
Series 2008A Notes. On November 13, 2008, the <strong>Commission</strong> issued its <strong>Airport</strong> <strong>Commission</strong> <strong>of</strong> the <strong>City</strong><br />
<strong>and</strong> <strong>County</strong> <strong>of</strong> <strong>San</strong> Francisco <strong>San</strong> Francisco International <strong>Airport</strong> Second Series Revenue Notes, Series 2008A in the<br />
aggregate principal amount <strong>of</strong> $226,735,000 (the “Series 2008A Notes”). The Series 2008A Notes were issued to<br />
refund the <strong>Commission</strong>’s <strong>San</strong> Francisco International <strong>Airport</strong> Second Series Variable Rate Revenue Refunding<br />
Bonds, Issue 37A. Series 2008A Notes in the aggregate principal amount <strong>of</strong> $99,945,000 are subject to m<strong>and</strong>atory<br />
tender by the Owners there<strong>of</strong> for purchase by the <strong>Commission</strong> on May 1, 2010, Series 2008A Notes in the aggregate<br />
principal amount <strong>of</strong> $41,065,000 are subject to m<strong>and</strong>atory tender for purchase on May 1, 2011 <strong>and</strong> Series 2008A<br />
Notes in the aggregate principal amount <strong>of</strong> $25,460,000 are subject to m<strong>and</strong>atory tender for purchase on May 1,<br />
2012.<br />
The Series 2008A Notes were subject to an Invitation to Tender Bonds, dated September 18, 2009 pursuant<br />
to which the <strong>Commission</strong> elected to purchase <strong>and</strong> refund $60.265 million principal amount <strong>of</strong> the Series 2008A<br />
Notes that resulted in sufficient debt service savings to the <strong>Commission</strong>. The tendered Series 2008A Bonds were<br />
refunded with proceeds from the issuance <strong>of</strong> the Series 2009C Bonds.<br />
The obligation <strong>of</strong> the <strong>Commission</strong> to purchase Series 2008A Notes upon m<strong>and</strong>atory tender is not secured<br />
by any liquidity or credit facility.<br />
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