Seattle-Tacoma International Airport

Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Not available

Terminal Rental Rate

Terminal Area Expenses / Gross Terminal Space with space category weighting

Common Use & Gate Allocation

Additional Bonds Test

Port may issue additional Intermediate Lien Parity Bonds if not in default and either: (i) Port certificate showing Available Intermediate Lien Revenues as First Adjusted during Base Period were at least 110% of Annual Debt Service for each year of the Certificate Period (covers existing and proposed bonds), OR (ii) Consultant certificate projecting same 110% coverage. If Debt Service Offsets used, must be irrevocably pledged for Certificate Period. Certificate Period = year of issuance through third full fiscal year after earlier of (a) Date of Commercial Operation or (b) no more capitalized interest. No certificate required for certain refundings meeting specified criteria or completion bonds ≤15% of prior issuance.

Rate Covenant

The Port covenants to set rates sufficient to yield: (i) Available Intermediate Lien Revenues as First Adjusted at least equal to 110% of the Amount Due, AND (ii) Available Intermediate Lien Revenues as Second Adjusted at least equal to 125% of the Amount Due. These are separate, non-cumulative calculations. Amount Due = (a) Scheduled Debt Service, plus (b) deposits to Intermediate Lien Reserve Account, plus (c) amounts due to Credit/Liquidity Facility Issuers, excluding refunding debt, capitalized interest, and Intermediate Lien Debt Service Offsets.

Flow of Funds

First: O&M not paid from other sources (CFC, Tax Levy). Second: First Lien Bond debt service. Third: First Lien reserve accounts (Common Reserve Fund). Fourth: Other prior lien bonds (junior to First Lien, senior to Intermediate). Fifth: Intermediate Lien Parity Bond debt service and Net Payments on derivative products. Sixth: Intermediate Lien Reserve Account. Seventh: Reserved Lien Revenue Bonds. Eighth: Reserved Lien reserves. Ninth: Subordinate Lien Parity Bond debt service. Tenth: Subordinate reserves. Eleventh: Repair & Renewal Fund. Twelfth: Redemption/purchase of bonds or other lawful purposes. Nonscheduled derivative payments payable after Sixth.