FY2016 CCDOA Financial Report as of 6302016.pdf - page 49

36
On January 5, 2015, the Board approved a reoffering of the Clark County, Nevada General Obligation (Limited
Tax)(Additionally Secured by Pledged Airport System Revenues) Airport Bonds Series 2008A ("Series 2008A Bonds")
and Airport System Subordinate Lien Revenue Bonds, Series 2008 C-2 and Series 2008 C-3 ("Series 2008 C-2 Bonds"
and "Series 2008 C-3 Bonds," respectively). The reoffering of the Series 2008A Bonds, which closed on February 18,
2015, occurred to replace the expiring Standby Bond Purchase Agreement with Landesbank-Baden Wurttemberg
with a new Standby Bond Purchase Agreement with State Street Bank and Trust Company. The succeeding
agreement is irrevocable and expires on February 15, 2019. The reoffering of the Series 2008 C-2 and C-3 Bonds,
which closed on February 18, 2015, occurred to replace the expiring Letter of Credit agreement with Landesbank-
Baden Wurttemberg with a new Irrevocable Direct-Pay Letter of Credit agreement with State Street Bank and Trust
for the Series 2008 C-2 Bonds and a new Irrevocable Direct-Pay Letter of Credit agreement with Sumitomo Mitsui
Banking Corporation for the Series 2008 C-3 Bonds. Both of the succeeding Letters of Credit expire on February 15,
2019.
On January 5, 2015, the Board approved extending the Irrevocable Direct-Pay Letter of Credit with State Street
Bank and Trust Company for the Airport System Subordinate Lien Revenue Bonds Series 2008 A-2 and Series 2008 B-2
Bonds. The extended agreements were executed on February 18, 2015, and expire on February 15, 2019.
On July 1, 2014, the Department issued the $103.4 million Series 2014B Junior Subordinate Lien Revenue Notes
("Series 2014B Notes") to refund the Series 2013 C-2 Junior Subordinate Lien Revenue Note and to pay certain costs
of issuance thereof. The Series 2014B Notes has a stated interest rate of 5.00 percent and a maturity date of July 1,
2018. Refer to Note 9, "Long-term Debt," for more detail relating to the Department’s outstanding long-term debt.
The Department continually reviews strategies to minimize debt service and keep airline costs as reasonable as
possible. The ability to adapt to rapidly changing market demands, as has been seen the last several years, will be
a critical element to achieving reasonable borrowing costs and maintaining the Department’s healthy credit rating.
For instance, the Department took full advantage of the provisions under the American Recovery and
Reinvestment Act of 2009 ("ARRA"), being the first airport to issue Build America Bonds in the United States in
September 2009.
The Department’s bonds are rated by these two major credit rating agencies. The current ratings are as follows:
Moody's
S&P
Senior Lien Revenue Bonds
Aa3
AA-
Subordinate Lien Revenue Bonds
A1
A+
PFC Revenue Bonds
A1
A+
Junior Subordinate Lien Debt and Jet A Bonds
A2
A+
General Obligation Bonds
Aa1
AA
1...,39,40,41,42,43,44,45,46,47,48 50,51,52,53,54,55,56,57,58,59,...169
Powered by FlippingBook