Purpose. Bonds issued to refund Commercial Paper Notes and to finance costs of certain improvements to Port Authority Properties.

Structure. Series 2025A (AMT): term bonds in 2050 and 2055, with 5.25% and 5.50% coupons, respectively; Series 2025B (Non-AMT): term bonds in 2050 and 2055, with 5.00% and 5.25% coupons, respectively; Series 2025C (Taxable): term bonds in 2043 and 2048. All series were structured to wrap around the County’s existing Aviation Revenue debt service, with the taxable debt service structured first in order to minimize borrowing costs.

Ratings. Kroll improved its outlook on the County’s bonds to Positive and affirmed its rating of AA-. S&P and Fitch both affirmed the ratings at A+ (Stable).

Market Conditions. The week of February 17th, the municipal market expected a manageable calendar of $5.1 billion given the shortened holiday week. The week before pricing, there was extreme volatility in both the equity and bond markets following a higher than expected CPI announcement, leading to fears that future Fed rate cuts would be further delayed.

Marketing and Pricing Strategy. SWS led the development of the investor roadshow which was tailored to focus on MIA’s strong enplanement growth, importance as a global gateway, demand-driven capital improvement program, and healthy historical and projected financials. The slides-only investor roadshow was viewed by 63 different investors, 41% of which ultimately submitted orders. For pre-marketing and Taxable Indications of Interest (“IOI”) on Wednesday, the municipal and Treasury markets were relatively stable, with MMD rates unchanged and UST rates slightly improved by 1-3 bps compared to the prior day. During the IOI period, there was significant demand for the Taxable Bonds, with SWS generating over $900 million of orders across both term bonds (4.8x oversubscription). The morning of pricing, both the government and municipal markets opened with slightly positive tones, prompting SWS to recommend tightening spreads by 2 bps on all AMT and Non-AMT maturities vs. pre-marketing levels. Given the positive market tone coupled with strong IOI order book, SWS also recommended tightening Taxable spreads by 7 bps and 5 bps on the 2043 and 2048 term bonds, respectively, going into Price Guidance.

Pricing Results. For the AMT and Non-AMT Bonds, SWS generated over $2.4 billion in priority orders from 64 different investors (7.2x oversubscription) – 45 of which did not previously report holding the County’s outstanding Aviation Revenue Bonds. At re-pricing, SWS tightened spreads on both AMT term bonds by 6 bps and for the Non-AMT series by 10 bps on the 2050 term and 8 bps on the 2055 term. SWS was also able to tighten spreads on the Taxable Bonds by an additional 3 bps, for total spread improvements of 10 bps and 8 bps on the 2043 and 2048 term bonds, respectively, versus IOI levels. The final pricing spread on the 2055 Non-AMT term bond was the tightest 30-year non-AMT spread of any Airport Revenue Bond transaction priced since July 2021, inclusive of higher rated and higher coupon issuances. Compared to the most recently priced similarly rated airport issue (Columbus Airport – A2/A), the County’s 25-year and 30-year AMT and Non-AMT spreads were 6-7 bps tighter for maturities with like coupons and 4-5 bps tighter in maturities where the County’s bonds were structured with a lower coupon. Additionally, the County’s 30-year Non-AMT spread priced 2 bps tighter than Jacksonville Electric Authority, an essential service credit rated 3 notches higher than the County (Aa1/AA+/AA+), that priced the prior month.