HOUSTON – Bracewell LLP recently served as co-bond counsel in the authorization of $350 million City of Houston, Texas Senior Lien Revenue Commercial Paper Notes, Series A (AMT) and Series B (Non-AMT) for the City of Houston Airport System. The commercial paper program funds capital improvements for all Houston airports, including Bush Intercontinental and Hobby airports. The transaction closed on April 1, 2020.
Since 1993, the City of Houston has maintained a commercial paper program, typically in the amount of $150 million, to fund various capital improvements. Because the city has embarked on a capital improvement program entailing over $1 billion of improvements to rebuild Bush Intercontinental’s International Terminal and Terminal A, additional commercial paper capacity was needed. The commercial paper program is supported by a direct-pay letter of credit issued by the Sumitomo Mitsui Banking Corporation, acting through its New York Branch, in the amount of $350 million plus 270 days’ of interest.
Due to the impact of COVID-19 on the airline industry and airports, the transaction was one of the few airport deals that has closed without significant changes to the terms, covenants and other requirements.
Bracewell lawyers involved in this transaction included:
Partners: Barron F. Wallace and Victoria N. Ozimek
Counsel: Peggy B. Christman