Dallas is gearing up to sell up to $348 million of bonds and other obligations this fall after a resolution for the issuance was approved on Wednesday by the city council, which also passed airport measures related to debt.
The city's issue consists of $312 million of general obligation refunding and improvement bonds and $36 million of equipment acquisition contractual obligations.
Pending approval of parameters ordinances in October, a competitive sale is scheduled for Nov. 12, according to Dallas Debt Administrator Filicia Hernandez, who added up to $58 million of Series 2017 GO bonds are targeted for refunding.
Bracewell and West & Associates are co-bond counsels, Norton Rose Fulbright is disclosure counsel, and Hilltop Securities and Estrada Hinojosa are co-financial advisors, according to the resolution.
The city council signed off on the Love Field Airport Modernization Corporation's issuance of up to $150 million of commercial paper notes that are subject to the alternative minimum tax. Proceeds will provide interim financing for projects and refund other obligations.
The home base airport for Southwest Airlines earlier
The council okayed the purchase of an 811-room Hyatt Regency hotel and the assumption of its ground lease by Dallas Fort Worth International Airport's Public Facility Improvement Corporation at a cost not to exceed $193.65 million. Revenue generated by PFIC, which already owns three other Hyatt hotels at the airport, would be tapped to pay off debt issued for the transaction, according to DFW's Chief Financial Officer Brian Butler.
"Initially, it'll go on a commercial paper program that the airport has, but ultimately it's all paid through the PFIC organization through the cash flow generation of the properties," he told the council.
He added that the opportunity to own all four hotels "would allow us to control our destiny as far as the customer experience, the revenue, and the expense that goes into operating these properties."
The airport's $1.62 billion fiscal 2027 budget also received council approval.
The Fort Worth City Council is expected to take up the measures next week, a DFW spokesperson said.
