City of Houston, Texas
OFFICIAL STATEMENT DATED AS OF JUNE 28, 2011 NEW ISSUE — BOOK-ENTRY ONLY RATINGS: SEE “RATINGS” HEREIN In the opinion of Co-Bond Counsel, under existing law, (i) (A) interest on the Series 2011A Bonds (as defined below) is excludable from gross income for federal income tax purposes except for any period a Series 2011A Bond is held by a person who, within the meaning of section 147(a) of the Internal Revenue Code, as amended, is a “substantial user” or a “related person” to a “substantial user” of the facilities financed or refinanced with the proceeds of the Series 2011A Bonds, as described under “TAX MATTERS” herein, and (B) interest on the Series 2011A Bonds is an item of tax preference that is includable in alternative minimum taxable income for purposes of determining the alternative minimum tax imposed on individuals and corporations, and (ii) (A) interest on the Series 2011B Bonds (as defined below) is excludable from gross income for federal income tax purposes, and (B) interest on the Series 2011B Bonds is not an item of tax preference that is includable in alternative minimum taxable income for purposes of determining the alternative minimum tax imposed on individuals. See “TAX MATTERS” herein for a discussion of the opinion of Co-Bond Counsel, including a description of alternative minimum tax consequences for corporations holding Series 2011B Bonds. CITY OF HOUSTON, TEXAS Airport System $449,975,000 $116,930,000 SUBORDINATE Lien REvenue SUBORDINATE Lien REvenue Refunding Bonds, Refunding Bonds, Series 2011A (AMT) SERIES 2011B (Non-AMT) Interest Accrual Date: Date of Delivery CUSIp prefix: 442348 Due: As shown on inside cover This Official Statement is provided to furnish information in connection with the offering by the City of Houston, Texas (the “City”) of its Airport System Subordinate Lien Revenue Refunding Bonds, Series 2011A (AMT) (the “Series 2011A Bonds”) and Airport System Subordinate Lien Revenue Refunding Bonds, Series 2011B (Non-AMT) (the “Series 2011B Bonds,” and together with the Series 2011A Bonds, the “Series 2011 Bonds”).
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