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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The funds available to the <strong>Commission</strong> to pay the redemption price <strong>of</strong> any M<strong>and</strong>atory Tender Bonds, if they<br />
could not otherwise be purchased, would include (i) any amounts in the Reserve Account for such M<strong>and</strong>atory Tender<br />
Bonds, (ii) any amounts in the Contingency Account, (iii) proceeds from Commercial Paper Notes, but only if <strong>and</strong> to the<br />
extent there is remaining capacity to issue Commercial Paper Notes pursuant to the Subordinate Resolution, <strong>and</strong> (iv) any<br />
other unencumbered funds <strong>of</strong> the <strong>Commission</strong>, which likely would consist primarily <strong>of</strong> working capital in the Revenue<br />
Fund. See also “SECURITY FOR THE 2010A BONDS–Other Debt Issuance–Subordinate Bonds.” Any failure <strong>of</strong> the<br />
<strong>Commission</strong> to pay the M<strong>and</strong>atory Tender Bonds <strong>of</strong> a Series upon the m<strong>and</strong>atory redemption there<strong>of</strong> will constitute an<br />
Event <strong>of</strong> Default under the 1991 Master Resolution.<br />
The <strong>Commission</strong>, for at least the past 40 years, has always had market access to sell its revenue bonds at such<br />
times <strong>and</strong> in such amounts as it has chosen to issue. However, the <strong>Commission</strong> cannot provide any assurance that it will<br />
continue to have market access to remarket the M<strong>and</strong>atory Tender Bonds (or, in the alternative, to refund the<br />
M<strong>and</strong>atory Tender Bonds) upon the m<strong>and</strong>atory tender there<strong>of</strong> for purchase. Lack <strong>of</strong> market access could result from<br />
then-existing market conditions or from an unanticipated <strong>and</strong> substantial deterioration in the financial condition <strong>of</strong> the<br />
<strong>Airport</strong>. Although the <strong>Commission</strong> may have sufficient funds available to pay each Series <strong>of</strong> M<strong>and</strong>atory Tender Bonds<br />
upon the m<strong>and</strong>atory redemption there<strong>of</strong>, the <strong>Commission</strong> does not expect to have sufficient funds on h<strong>and</strong> or sufficient<br />
Net Revenues on h<strong>and</strong> to pay all <strong>of</strong> the M<strong>and</strong>atory Tender Bonds if they were to become subject to m<strong>and</strong>atory<br />
redemption due to an inability to remarket or refund them.<br />
The <strong>Commission</strong> has outst<strong>and</strong>ing approximately $519 million <strong>of</strong> variable rate tender option bonds <strong>and</strong><br />
commercial paper notes backed by either bond insurance <strong>and</strong> a bank liquidity facility or by a bank letter <strong>of</strong> credit.<br />
Commercial<br />
Issue 36A Issue 36B Issue 36C/D Issue 37C/D Paper<br />
Principal Amount $100,000,000 $40,620,000 $68,830,000 $109,585,000 $200,000,000<br />
Type LOC (1) LOC (1) SBPA (2) SBPA (2) LOC (1)<br />
Expiration Date May 7, 2013 May 6, 2011 May 15,2013 May 15, 2013 May 9, 2011<br />
Insurer N/A N/A FSA FSA N/A<br />
Rating (3)<br />
Aa3/AAA/AA+ Aa3/AAA/AA+<br />
Credit/Liquidity Provider Wells Fargo<br />
____________<br />
(4) UBOC (5) Dexia (6) Dexia (6) State Street (7)<br />
Credit/Liquidity Provider Ratings (4)<br />
Short-Term F-1/A-1+/F1+ P-1/A-1/F1 P-1/A-1/F1+ P-1/A-1/F1+ P-1/A-1/+F1+<br />
Long-Term Aa2/AA/AA- A2/A+/A A1/A/A+ A1/A/A+ Aa2/AA-/A+<br />
(1) LOC means Letter <strong>of</strong> Credit.<br />
(2) SBPA means St<strong>and</strong>by Bond Purchase Agreement.<br />
(3) As <strong>of</strong> January 15, 2010. Ratings are provided for convenience <strong>of</strong> reference only. Such rating information has been obtained from sources<br />
believed to be reliable but has not been confirmed or re-verified by the rating agencies. None <strong>of</strong> the <strong>Commission</strong> or the Underwriters takes<br />
any responsibility for the accuracy <strong>of</strong> such ratings, or gives any assurance that such ratings will apply for any given period <strong>of</strong> time, or that<br />
such ratings will not be revised downward or withdrawn if, in the judgment <strong>of</strong> the agency providing such rating, circumstances so warrant.<br />
(4) Wells Fargo means Wells Fargo Bank, National Association.<br />
(5) UBOC means Union Bank, N.A.<br />
(6) Dexia means Dexia Crédit Local, acting through its New York Branch.<br />
(7) State Street means State Street Bank <strong>and</strong> Trust Company.<br />
Credit Risk <strong>of</strong> Financial Institutions Providing Credit Enhancement, Liquidity Support <strong>and</strong> Other Financial<br />
Products Relating to <strong>Airport</strong> Bonds<br />
The <strong>Airport</strong> entered into a number <strong>of</strong> liquidity, credit enhancement <strong>and</strong> other transactions involving a<br />
variety <strong>of</strong> financial institutions relating to its Outst<strong>and</strong>ing Bonds, including bond insurance policies <strong>and</strong> debt service<br />
reserve fund surety bonds issued by monoline bond insurance companies. Additionally, in connection with various<br />
variable rate bonds issues, the <strong>Airport</strong> entered into credit <strong>and</strong> liquidity agreements <strong>and</strong> interest rate swap agreements<br />
with <strong>and</strong>/or guaranteed by various financial institutions, including commercial <strong>and</strong> investment banks. See also<br />
“AIRPORT’S FINANCIAL AND RELATED INFORMATION–Interest Rate Swaps.”<br />
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