Responsibilities of Debt Issuers

1. Responsibilities of Debt Issuers CDIAC Debt Basics – February 1, 2011 Marla Bleavins – Debt & Treasury Manager Los Angeles World Airports

2. Overview • The Planning Process • Managing the Financing Team • Understanding Your Transaction • Investor Outreach • Rating Agency Process • Post Issuance Matters

3. The Planning Process • Establish a debt policy • Identify capital needs • Select financing team • Set targets and structure for debt issuance • Determine method of sale • Educate your decision making body about the transaction

4. Managing the Financing Team • Issuer as quarterback • Select team early • Clarify roles and expectations from the start • Maintain a strong presence throughout the transaction • Strive for balance of opinions • Be mindful of biases and turf wars

5. Understanding the Transaction • Know your deal • Know what your organization’s obligations are going forward • Understand the documents • Understand the numbers and how they impact your organization • Be wary of trends • Don’t be afraid to push back on the experts

6. Investor Relations • Most dramatic change since 2008 • Be proactive • Have an internet presence – Investor Relations Web Site • Work with disclosure counsel • Netroadshow • One-on-one meetings with investors

7. Rating Agency Process • Be proactive • Have a strong narrative, not just a data dump • Involve your upper management – prepare them • Anticipate questions and organize key data in easily accessible charts • Make the analysts’ job easy

8. Post Issuance Matters • Debt service payments • Annual disclosure filings • Compliance with bond covenants • Update rating agencies and investors • Tracking arbitrage rebate liabilities • Monitor refunding opportunities • Vendor management • Technological Tools • Tickler system and debt management software