Los Angeles World Airports. Trade, Travel and Tourism Committee City of Los Angeles. Los Angeles International Airport Revenue Bond Authorization

Transcription

1 \ 0-- ' -a, Trade, Travel and Tourism Committee City of International Airport Revenue Bond Authorization Date;. \Q- n-n Submitted in \ ~T~T Committee October 17, 2017 Council File No: item No. Pi r~i 1 1 uwwcrcy. 3 ^ L-J\VS k

2 Near-term Estimates of Project Cost and Funding Projected Capital Projects and Anticipated Sources of Funding ( in Millions) Series 2017AB Subordinate Bonds Projects Midfield Satellite Concourse -- North Project North Terminal Improvement Program Runway Safety Area Improvements Total Series 2017AB Subordinate Bonds Projects Projected Future Estimated Project Costs Grants & PEC's Dept. Funds & Other Prior Bonds Construction Bond Proceeds 1, , , , ,331.7 Other Committed and Planned Projects Terminal Terminal 1 Improvement Project Terminals 6/7/8 Improvement Project Terminal Commercial Management {Tl, T2, T3, T6, TBIT) Terminal 1.5 Program Terminal 2 Improvement Project MSC/BW Baggage Optimization Project Elevators and Escalators Replacements Acquisition of Terminal 4 Improvements Bradley West Outbound Baggage Handling System Other Terminal Projects Terminal Total , , Airfield and Apron Midfield Satellite Concourse ~ North Apron Project North Airfield Taxiways Taxiway C14 Construction Other Airfield and Apron Projects Airfield and Apron Total Other Projects Total Total Other Committed and Planned Projects , , Total i ,263.3 L 1,525.7 i 2, B of ongoing or immediately identifiable project costs

3 Requested Revenue Bond Authorization for Project Costs Of the estimated 3.8 billion in project costs to be funded with bonds: 1.5 billion has been funded through prior bond issuances 1.4 billion will be covered by the new debt authority 0.9 billion remaining under the current debt authority Total Project Funding Sources (7.7B) Tenant PIC Dept. Funds IPrior Bonds f Future Bonds r Allocation of bond funding based on: Recovery of costs through an established rate methodology Preservation of cash for future landside program and operational reserves Balancing a broad base of funding sources Historically low interest costs m AIP TSA

4 Requested Authorization I.os Angeles - i) 1.4 billion in New Money Bonds 2) 0.8 billion in Refunding Revenue Bonds 3) Negotiated/Prvate Sales for the Bonds Revenue credits benefit from pre-sale marketing Ability to make adjustments to size and structure, based on market demand and conditions 4) Banking teams on 1.1 billion of requested authorization e LAWA will return to the Board and City Council with recommendations for negotiated/private sales for the balance of I. I billion

5 Recommended Banking Teams Competitive process to identify senior manager assignments for 1.1 billion of future bond transactions Proposals scored on: Financing Recommendations Rating Agency Strategy Fees Projected Banker Representation Highest ranked firms: 1. JP Morgan Securities 2. Goldman Sachs & Co. 3. Ramirez & Co. Local/Emerging Bank General Inv. Bank Assures sufficient transaction support during sale of bonds Provides opportunity for experience working on LAX s bond issue - benefiting LAWA in future Broadens access to investor base Complies with City s Responsible Banking Ordinance