HomeMy WebLinkAboutIR 7927 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7927
1� June 6, 1995
To the Mayor and Members of the City Council
ex Subject: D/FW AIRPORT -JOINT REVENUE REFUNDING BONDS,
1873 SERIES 1995
BACKGROUND
Pursuant to the Municipal Airports Act and the Contract and Agreement between the
Cities of Fort Worth and Dallas, each City Council enacts an identical ordinance in order to
authorize the issuance of joint Revenue Bonds for D/FW Airport. The ordinance
establishes a maximum principal amount, a rate of interest and terms of sale and delegates
to the respective City Managers the authority to approve complete terms with the
concurrence of the Executive Director of the Airport Board.
DISCUSSION
The Airport Board met on June 1 to approve the Twenty-Sixth Supplemental Bond
Ordinance and requested the Cities adopt the Ordinance on June 13 (Fort Worth) and June
14 (Dallas). The Ordinance will approve the issuance of the Series 1995 Bonds and other
provisions necessary for the issuance and delivery of the Series 1995 Bonds in a principal
amount not to exceed $190,000,000, at interest rates not to exceed 7.5%, and with a maturity
no later than November 1, 2015.
The proceeds of the Series 1995 Bonds, together with other available funds, will be used to
call and refund the outstanding D/FW Regional Airport Joint Revenue Bonds, Series 1985
and Series 1992, maturing November 1, 1995 and thereafter. This refunding is required to
reduce airport debt service by at least$18 million in total present value amount of principal
and interest which otherwise would be payable from "Pledged Revenues". Under present
market conditions, it is estimated airport debt service will be reduced by approximately $40
million. This savings will provide economic benefits for the airlines serving D/FW Airport.
In adopting the ordinance, the Cities will also authorize and approve the submission to the
State Attorney General for approval of a Fourth Interest Rate Swap Transaction approved
by the D/FW Airport Board.
The attached Estimated Issuance Costs and DBE Participation lists the proposed
participants and estimates DBE participation at 55%.
Currently, the sale of the fixed rate bonds and execution of the swap contract is scheduled
for June 20, with the closing set for August 3.
RECORD
(94A&- 6Z- i��
f Bob Terrell Uff SECRETARY
City Manager FT. WoRTH, TEX.
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Attachment
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ATTACHMENT A
May 12, 1995
DALLAS/FORT WORTH REGIONAL AIRPORT
JOINT REVENUE REFUNDING BONDS, SERIES 1995
ESTIMATED ISSUANCE COSTS AND DBE PARTICIPATION
All estimates are based on an issue size of$176,060,000. As of the date of this report, the
underwriting spread has not been negotiated, nor have allocations within the underwriting group
been discussed. The assumed underwriters' compensation is based on the last comparable DFW
Airport financing and allocations assume an equal opportunity to market the bonds. Other fee
estimates are based on existing professional contracts with DFW Airport or recent experience.
Actual percentages and amounts will vary from these estimates, since the purpose of this report is
to reflect our progress in attaining the DBE goals of DFW Airport.
Total
Professional DBE
Fees Fees
Co-Bond Counsel
McCall, Parkhurst & Horton L.L.P. $ 99,000 $
Vinson & Elkins L.L.P. 99,000
Total $
Special Counsel
Flores & Utt (DBE#HOSD4750Y0894) $ 25-000 1 25,000
Co-Financial Advisor
First Southwest Company $ 198,000 $ -
Walton Johnson & Company, Inc. (DBE) 85,000 85,000
Total $ 283,000 $ 85,000
Co-Underwriters
Grigsby Brandford & Company, Inc. (DBE) $ 204,510 $204,510
Estrada Hiriojosa& Company, Inc. (DBE) 204,510 204,510
Pryor McClendon Counts & Co., Inc. (DBE) 204,510 204,510
Apex Securities, Inc. (DBE) 102,255 102,255
Bear Steams & Co., Inc. 102,255 -
Merrill Lynch & Co. 102,255
Smith Barney 102,255 -
Total 0 550 $715,785
Official Statement Printer
Markern Printing (DBE) 1 30,000
Estimated Total Professional Fees $ 1,558,550 $855,785
Estimated DBE Participation 55%