FY2016 CCDOA Financial Report as of 6302016.pdf - page 102

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
89
Series 2015C:
On July 22, 2015, the Department issued the Passenger Facility Charge Refunding Revenue Bonds 2015
Series C ("Series 2015C Bonds") for $99.0 million. The Department used the issuance proceeds to
execute an advance refunding of the Series 2007 A-2 (Non-AMT) Passenger Facility Charge Revenue
Bonds, to purchase a reserve fund surety policy for the Series 2015C PFC Bonds, and to pay for certain
costs of issuance. The advance refunding proceeds were deposited in an irrevocable trust to provide
for all future debt service of the refunded Series 2007A-2 (Non-AMT) Passenger Facility Charge Revenue
Bonds. As a result, the Series 2007 A-2 (Non-AMT) Passenger Facility Charge Revenue Bonds are
considered defeased, and the liability has been removed from the accounts. As of June 30, 2016,the
outstanding principal of the defeased bonds is $105.5 million. The Series 2015C PFC Bonds bear a fixed
interest rate of 5.00 percent, with yields varying from 1.42 percent to 3.24 percent. The Series 2015C
Bonds have staggered maturities from July 1, 2019, to July 1, 2027, with interest payments due on
January 1 and July 1 of each year and scheduled principal payments due on July 1 of each year. The
refunding transaction yielded a net present value savings of $13.4 million and a loss on refunding of
$5.5 million. The reserve fund policy is issued by Assured Guaranty Municipal Corporation.
Junior Subordinate Lien and Jet A Bonds
Series 2013A Jet A Bonds:
In April 2013, the County issued $71.0 million of the Series 2013A AMT Jet Aviation Fuel Tax Revenue
Bonds at a premium of $9.6 million. Interest on the bonds is 5.00 percent, and the yield varies from 2.15
to 3.77 percent. The bonds have staggered scheduled maturities through July 1, 2029. Interest
payments are due on January 1 and July 1 of each year, and scheduled principal payments are due
on July 1. The Series 2013A Bonds were issued for the purpose of refunding the outstanding 2003C Jet A
Bonds and to pay certain costs of issuance. Proceeds from the Jet A Fuel Tax have been projected to
be sufficient to pay all debt service payments. This refunding provided a net present value savings of
$4.7 million.
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