3-Attachment C - Frequently Asked Questions.pdf
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- Attached to
- Equipment Financing Bid State and local contract opportunity
- Solicitation number
- Solicitation081
- Issued by
- Minnesota
About this file
This is a Frequently Asked Questions document (Attachment C) from the Metropolitan Airports Commission (MAC) for an Equipment Financing Request for Bids. The document addresses common inquiries related to MAC's annual equipment financing project, with a target escrow closing date of November 1, 2025. The financing structure will involve twenty semi-annual payments of equal amounts due in March and September of each year, made in advance. The transactions will be structured as municipal tax-exempt lease purchases where MAC holds title to the equipment while the lessor maintains a first priority security interest. Additional equipment may be added to lease transactions on separate co-terminus schedules, though this is considered unlikely.
The financing will be conducted on a tax-exempt basis and classified as Non-Bank Qualified since MAC expects to issue over $10 million in debt during the year. Equipment essentiality has been certified through passage of MAC's 2025 operating budget. Payments are not subject to annual appropriation requirements, making them non-cancellable lease obligations. MAC will provide both liability and property damage insurance coverage when maintaining care, custody, and control of the financed equipment. Financial information for prospective bidders is available through MAC's Investor Relations website, and additional lease payment details are referenced in Attachment D – Technical Specification Rider.
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Other files for this state and local contract opportunity
| File | Type | Posted |
|---|---|---|
| 1-Attachment A - Equipment List.pdf | ||
| 2-Attachment B - Bid Form.pdf | ||
| 5-Request for Bids - Equipment Financing.pdf | ||
| 4-Attachment D - Technical Specification Rider.pdf |
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Text version
METROPOLITAN AIRPORTS COMMISSION
Attachment C Frequently Asked Questions
SPECIFICATIONS FOR
Equipment Financing
Request for Bids
TO: ALL PROSPECTIVE BIDDERS
This document contains commonly asked questions related to our annual equipment financing project.
1. Tell us how the payments will be made, advance, arrears, etc, for this RFB.
Answer: Semi-annual payments are to be made in advance in March and September.
2. Do you have a target closing date for escrow?
Answer: November 1, 2025.
3. Is it the expectation that this equipment will be financed on a taxable or tax-exempt basis?
Answer: Tax-exempt basis.
4. Can the transactions be structured as municipal tax-exempt lease purchases, where MAC holds the title of the equipment, and Lessor has a first priority security interest in the financed equipment?
Answer: Yes.
5. How does MAC intend to add additional dollars or equipment to the lease transactions (Technical Specifications, page 16)? Can this additional equipment be placed on a separate co-terminus schedule?
Answer: Yes, and it is unlikely that additional equipment will be added.
6. If these transactions are structured as municipal tax-exempt lease purchases, whereas MAC is the owner of the equipment, will MAC provide liability insurance in addition to property damage insurance?
Answer: Yes, when MAC has care, custody, and control of equipment we carry both the liability and property coverage.
7. Would the Airports Commission be willing to certify the essentiality of the equipment?
Answer: Was passed as part of the 2025 operating budget.
8. Can payments be made monthly or quarterly?
Answer: No, there will be twenty semi-annual payments of equal amounts due in March and September of each year.
9. Where and when can we obtain financials?
Answer: Financial Information:
MAC financials are located at:
Investor Relations | Metropolitan Airports Commission (metroairports.org)
10. I am looking at Non-Bank Qualified vs. Bank Qualified for pricing purposes. Do you expect that MAC will issue over $10 million in debt this year?
Answer: Yes, Non-Bank Qualified.
11. Does MAC have a non-appropriation clause we should be aware of? We only do non-cancellable leases, so a non-appropriation clause would be a problem for us.
Answer: Payments are not subject to annual appropriation. For further questions on lease payments see Attachment D – Technical Specification Rider.
END OF DOCUMENT
https://metroairports.org/doing-business/investor-relations
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