Nearly $725 Million in Bond Proceeds to Finance New Replacement Passenger Terminal at Hollywood Burbank Airport

2 minute read | May.31.2024

The authority that operates Hollywood Burbank Airport has closed on $724.78 million in bonds to help finance construction of a new passenger terminal.

Orrick represented the Burbank-Glendale-Pasadena Airport Authority as bond and disclosure counsel in issuing 2024 Series A, B and C Airport Senior Revenue Bonds.

The final pricing terms resulted in a true interest cost of 4.54% and total net debt service of $1.32 billion, the authority said in a statement.

THE AUTHORITY

The Burbank-Glendale-Pasadena Airport Authority is a government agency created under a joint powers agreement between the cities of Burbank, Glendale and Pasadena for the sole purpose of owning and operating Hollywood Burbank Airport.

THE IMPACT

The financing will support a new 14-gate passenger terminal at Hollywood Burbank Airport.

More than 100 institutional investors participated in the transaction.

“The Authority and its financing team believe the overwhelming reception for the bonds by the investment community provides a strong foundation for a second bond issue, anticipated to occur in 2026, to complete funding of the (Replacement Passenger Terminal) Project,” says Felicia Williams, President of the Authority.

The replacement terminal is scheduled to open in October 2026.

THE TEAM

Orrick’s Larry Sobel and Jenna Magan led the team advising the authority. The team also included Les Krusen, Sean Baxter and Cathleen Chang.

LEARN MORE

Burbank-Glendale-Pasadena Airport Authority news release

Hollywood Burbank Airport

Related Lawyers

Larry Sobel Partner, Tax

Los Angeles; Houston

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D:+1 213 612 2421
E: [email protected]

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Finance Sector
Tax

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Larry Sobel Partner

Los Angeles; Houston

As both bond counsel and underwriter’s counsel, he has been responsible for structuring and analyzing the tax aspects of many tax-exempt financings throughout the country.

Larry has extensive experience in handling IRS audits of bond transactions. He has represented issuers in dozens of audits all of which have ended favorably either with the IRS issuing a “no change” letter or by negotiating a reasonable settlement when needed. Larry also has handled a number of submissions under the IRS’ Voluntary Closing Agreement Program (or VCAP). The two most recent VCAP submissions represented cases of first impression for the IRS; one involving an issue of qualified energy conservation bonds relating to determining the amount of those bonds eligible for the federal subsidy; the other involved the plan to convert a “new money” bond issue into an advance refunding (which did not meet all of the requirements for a tax-exempt advance refunding). Both cases ultimately were resolved on the original terms proposed to the IRS.

Larry has also been instrumental in developing new financing techniques and structures. He first devised the tax structure and analysis for, and has served as tax counsel on, Orrick’s tax exempt tobacco revenue securitizations. He has developed the tax structure on numerous tax-exempt prepayments for natural gas for municipal utilities both within and outside of California.

Jenna Magan Partner, Public Finance

Sacramento

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D:+1 916 329 7980
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Finance Sector
Public Finance

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Jenna Magan Partner

Sacramento

Jenna has worked on all structures available in public finance, including fixed and variable, tax-exempt and taxable, insured, letter of credit and liquidity supported bonds, conversions, tenders, exchanges, restructurings and reofferings, senior/subordinate, capital appreciation and convertible capital appreciation bonds, securitizations, project finance, direct purchases, bank-qualified transactions and 144A and Section 4a2 offerings.

Jenna's practice focuses on the following areas, in which she has acted as bond, borrower’s, disclosure, underwriter's, and bank/direct purchaser’s counsel:

Healthcare, Senior Living and Other 501(c)(3) Financings
Local Government Lease, Enterprise (Water, Wastewater, Airport, Solid Waste), Pension Obligation and Short-Term Financings
State of California Bond Financings
Project Financings
Tobacco Securitization Financings
Post-Issuance Compliance

Leslie Conard Krusen Senior Associate, Public Finance

Seattle

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D:+1 206 839 4334
E: [email protected]

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Finance Sector
Public Finance

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Leslie Conard Krusen Senior Associate

Seattle

Les is a Senior Associate in the Public Finance practice group in Orrick’s Seattle office. He has served as bond counsel, disclosure counsel and underwriters’ counsel on public and privately placed tax-exempt and taxable debt issued by airports and ports, mass transit agencies, electric and water utilities, industrial development agencies and bond banks, higher education institutions and health care facilities. He has experience in advising clients in such financings in several states and U.S. territories, including Alaska, California, Guam, Nevada, New York, Oregon and Washington.

During the course of his practice, Les has worked on various types of financing structures, including standard general obligation and revenue bond financings, bond and grant anticipation financings, master trust indenture financings, conduit financings, pooled financings, variable rate bonds and current and advance refundings.

Prior to joining Orrick, Les was an associate in the Capital Markets practice group at Cadwalader, Wickersham & Taft in New York, where he represented major foreign and domestic banks and boutique financial institutions as issuers, depositors, loan sellers, underwriters, initial purchasers and placement agents in connection with approximately $20 billion of public and private offerings of commercial mortgage-backed securities and collateralized loan obligations.

Cathleen Chang Senior Associate, Tax, Public Finance

Houston; Austin

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D:+1 713 658 6772
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Practice:

Finance Sector
Tax
Public Finance

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Cathleen Chang Senior Associate

Houston; Austin

In public finance matters, Cathleen has served as bond counsel and special tax counsel for a variety of transactions, including health care facilities, multifamily housing, airport, ports, transit authorities, non-profit organizations, public utilities, hospitality projects, as well as tobacco revenue securitizations. In addition to tax-exempt financings, Cathleen also represents clients in IRS audits and non-profit corporation tax matters.

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