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 table below summarizes the interest rate swap agreements entered into by the <strong>Commission</strong>.<br />
SUMMARY OF INTEREST RATE SWAP AGREEMENTS<br />
Initial Counterparty/ Guarantor Fixed Rate<br />
Associated Effective Notional Credit Ratings Payable by Market Value to Expiration<br />
Bonds Date Amount Counterparty/Guarantor (Moody’s/S&P/Fitch) (1)<br />
Insurer <strong>Commission</strong> <strong>Commission</strong> (1)<br />
Date<br />
Issue 36A/B<br />
3.444% ($4,688,628.47) May 1, 2026<br />
02/10/05 $70,000,000 J.P. Morgan Chase Bank, N.A. Aa1/AA-/AA- FGIC/National (2)<br />
02/10/05 69,930,000 J.P. Morgan Chase Bank, N.A. Aa1/AA-/AA- FGIC/National (2) 3.445 (4,690,077.14) May 1, 2026<br />
Subtotal Issue 36A/B 139,930,000 (9,378,705.61)<br />
Issue 36C<br />
3.444 (2,009,412.20) May 1, 2026<br />
02/10/05 30,000,000 Bear Stearns Capital Markets Inc./ Aa3/A+/AA- Assured (2)<br />
J.P. Morgan Chase Bank, N.A.<br />
Issue 36D<br />
3.445 (2,010,033.06) May 1, 2026<br />
02/10/05 29,970,000 Bear Stearns Capital Markets Inc./ Aa3/A+/AA- Assured (2)<br />
J.P. Morgan Chase Bank, N.A.<br />
Issue 37B<br />
3.898 (9,345,931.51) May 1, 2029<br />
05/15/08 79,684,000 Merrill Lynch Capital Services, Inc./ A2/A/A+ Assured (3)<br />
78<br />
Merrill Lynch & Co.<br />
Issue 37C 05/15/08 89,856,000 Bear Stearns Capital Markets Inc./ Aa3/A+/AA- Assured 3.898 (10,538,993.26) May 1, 2029<br />
J.P. Morgan Chase Bank, N.A.<br />
2010A<br />
3.895 (8,606,544.13) May 1, 2030<br />
02/01/10 71,973,000 Depfa BANK plc, New York Branch A3/BBB/A- (4)<br />
02/01/10 143,947,000 Goldman Sachs Group, Inc. Aa3/A/A+ 3.925 (17,211,759.37) May 1, 2030<br />
Subtotal 2010A<br />
215,920,000<br />
(25,818,303.50)<br />
OTAL $585,360,000 ($59,101,379.14)<br />
__________________<br />
(1) 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 believed to be reliable but has not been confirmed or reverified<br />
by the rating agencies. None <strong>of</strong> the <strong>Commission</strong> or the Underwriters takes any responsibility for the accuracy <strong>of</strong> such ratings, or gives any assurance that such ratings will apply for any<br />
given period <strong>of</strong> time, or that 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 />
(2) The Issue 32A/B/C Bonds that were hedged by these swap agreements were purchased with proceeds <strong>of</strong> the Issue 36A Bonds <strong>and</strong> the Issue 36B Bonds <strong>and</strong> are held in trust.<br />
(3) The Issue 37B Bonds that are hedged by this swap agreement were purchased with proceeds <strong>of</strong> the Series 2008B Notes <strong>and</strong> the Issue 37B Bonds are held in trust.<br />
(4) Given the decline in ratings for DEPFA, the <strong>Airport</strong> <strong>and</strong> its advisors have reviewed this interest rate swap agreement in contemplation <strong>of</strong> a potential optional termination by the <strong>Airport</strong>. Instead,<br />
the <strong>Airport</strong> has negotiated more favorable terms with respect to this swap which will remain in effect until such time as DEPFA’s ratings recover adequately. These measures include the posting <strong>of</strong><br />
collateral by DEPFA in an amount in excess <strong>of</strong> $4 million, even though that swap currently has a favorable termination value to DEPFA as <strong>of</strong> January 15, 2010.