Denver Convention Center Hotel Authority

CUSIP: 249189DR9

NAME: Denver Convention Center Hotel Authority

COUPON: 4.00%

MATURITY: 12/01/2037

BONDHOLDER SECURITY: The Bonds are secured by pledged revenues which includes gross revenues of the Denver Hyatt Regency Hotel and the Denver Economic Development Authority Payments from the City of Denver, subject to annual appropriation.  Revenue amounts are agreed to by the City of Denver, but subject to annual appropriation: $5.3MM through Dec 1, 2017, thereafter, $5.5MM through Dec 1, 2040. These amounts are to be paid each June and December, or approximately $10MM annually. Additional security is provided by first mortgage liens on the land and facilities assigned to the Trustee, which includes the hotel and garage. Various reserve funds, including a Debt Service Reserve Fund, provide additional bondholder security.

USE OF BOND PROCEEDS: Refund outstanding Series 2006 Bonds, fund various reserves, and pay costs of issuance.

RATINGS: Baa2 (Moody’s)

OBLIGOR PROFILE: The City and County of Denver owns the Colorado Convention Center located on a 2.4 acres site in downtown Denver. The Hotel and garage were completed and opened on December 20, 2005. The Hotel (1,123,936 sq. ft.) reaches a top height of 37 stories and has 1,100 guest rooms – 75% occupancy.  Senior debt service coverage ratio 2011-2015: 1.74x, 1.77x, 1.60x, 1.78x, 1.84x, respectively. Projected senior debt service coverage ratio with an assumed occupancy rate of 74% in 2017- 2019 is 3.10x, 3.22x, 2.84, respectively.

(Source: Official Statement, dated November, 4, 2016)

 

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