Municipality of Anchorage, Alaska
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PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 9, 2016 NEW ISSUE Standard and Poor’s Rating: ___ FULL BOOK-ENTRY Fitch Rating: AA+ (See the caption “RATINGS” herein) In the opinion of K&L Gates LLP, Bond Counsel, assuming compliance with certain covenants of the Municipality, interest on the Bonds is excludable from gross income for federal income tax purposes under existing law. Interest on the Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax. Interest on the Bonds may be indirectly subject to corporate alternative minimum tax and certain other taxes imposed on certain corporations. Interest on the Bonds is not included in taxable income for purposes of the Alaska income tax imposed on corporations. Interest on the Bonds may be indirectly subject to the Alaska alternative minimum tax imposed on corporations to the extent that interest on the Bonds is subject to the federal alternative minimum tax on corporations. See “TAX MATTERS” herein for a discussion of the opinion of Bond Counsel. MUNICIPALITY OF ANCHORAGE, ALASKA $22,940,000* $18,655,000* $42,315,000* 2016 General Obligation 2016 General Obligation 2016 General Obligation Bonds Bonds Refunding Bonds Series A Series B Series C (General Purpose) (Schools) (Schools) Dated: Date of Delivery Due: September 1, as shown on the inside cover The Bonds of each series will be issued as fully registered bonds and, when issued, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases of interests in the Bonds of each series will be made in book-entry form only, in the principal amount of $5,000 or any integral multiple thereof within a single series and maturity. Purchasers of such interests will not receive certificates representing their interests in the Bonds. Principal of and interest on the Bonds of each series are payable directly to DTC by U.S. Bank National Association, as authenticating paying agent and registrar (“Registrar”) for the Bonds. Principal of the Bonds of each series is payable on the dates set forth on the inside cover. Interest on the Bonds of each series is payable on March 1, 2017, and semiannually thereafter on each September 1 and March 1. Upon receipt of payments of principal and interest, DTC will in turn remit such principal and interest to the DTC Participants (as such term is defined herein) for subsequent disbursement to the purchasers of beneficial interests in the Bonds, as described in APPENDIX D— Book-Entry Only System. The Bonds are subject to redemption prior to their respective scheduled maturities as more fully described herein under the caption “DESCRIPTION OF THE BONDS—Redemption.” The Bonds are general obligations of the Municipality of Anchorage, Alaska (the “Municipality”), and the full faith, credit and taxing power of the Municipality are pledged for the payment of the principal of and interest on the Bonds when due. The Municipality has irrevocably pledged and covenanted to levy and collect taxes upon all taxable property within the Municipality, without limitation as to rate or amount, in amounts sufficient, together with other funds legally available therefor, to pay the principal of and interest on the Bonds when due. MATURITY SCHEDULES -- Inside of Cover Page The Bonds of each series are offered when, as and if issued and received by the Underwriters and are subject to the approving legal opinion of K&L Gates LLP of Seattle, Washington, Bond Counsel, as to validity and the exemption of interest thereon from federal income taxation. Certain legal matters will be passed upon for the Underwriters by Hawkins Delafield and Wood LLP, Sacramento, California. It is expected that the Bonds will be available for delivery through the facilities of DTC in New York, New York, by Fast Automated Securities Transfer (FAST) on or about November 30, 2016. J.P. Morgan BofA Merrill Lynch Citigroup Jefferies KeyBanc Capital Markets Inc. US Bancorp Wells Fargo Securities This Preliminary Official Statement and the information contained herein are subject to completion and amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy, buy, to offer an of a solicitation or sell to Preliminary this shall circumstances no Under offer an constitute Statement Official This Preliminary amendment. and completion to are subject herein contained the information and Statement Official prior of such jurisdiction. or qualification under the securities to registration be unlawful laws solicitation or sale would jurisdiction sale of the Bonds in any in which such offer, nor shall there be any * Preliminary, subject to change. MATURITY SCHEDULE∗ MUNICIPALITY OF ANCHORAGE, ALASKA $22,940,000* 2016 General Obligation Bonds Series A (General Purpose) Maturities, Amounts, Interest Rates and Yields (Base CUSIP† No. ______) Due Principal Interest CUSIP† Due Principal Interest CUSIP† September 1 Amount* Rate Yield No. September 1 Amount* Rate Yield No. 2018 $ 780,000 2028 $ 1,220,000 2019 800,000 2029 1,280,000 2020 835,000 2030 1,345,000 2021 870,000 2031 1,415,000 2022 910,000 2032 1,485,000 2023 955,000 2033 1,560,000 2024 1,005,000 2034 1,635,000 2025 1,055,000 2035 1,720,000 2026 1,105,000 2036 1,805,000 2027 1,160,000 $18,655,000* 2016 General Obligation Bonds Series B (Schools) Maturities, Amounts, Interest Rates and Yields (Base CUSIP† No. ______) Due Principal Interest CUSIP† Due Principal Interest CUSIP† September 1 Amount* Rate Yield No. September 1 Amount* Rate Yield No. 2017 $ 585,000 2027 $ 915,000 2018 600,000 2028 960,000 2019 620,000 2029 1,010,000 2020 650,000 2030 1,065,000 2021 680,000 2031 1,115,000 2022 710,000 2032 1,175,000 2023 750,000 2033 1,235,000 2024 785,000 2034 1,300,000 2025 830,000 2035 1,365,000 2026 870,000 2036 1,435,000 $42,315,000* 2016 General Obligation Refunding Bonds Series C (Schools) Maturities, Amounts, Interest Rates and Yields (Base CUSIP† No. ______) Due Principal Interest CUSIP† September 1 Amount* Rate Yield No. 2018 $ 7,925,000 2019 12,520,000 2020 13,025,000 2021 8,845,000 †Copyright 2016, American Banker’s Association. The CUSIP numbers herein are provided by Standard & Poor’s CUSIP Global Services, a division of the McGraw-Hill Companies Inc. These numbers are not intended to create a database and do not serve in any way as a substitute for the CUSIP Service. CUSIP numbers are provided for convenience of reference only. CUSIP numbers are subject to change. Neither the Municipality nor any of the Underwriters takes any responsibility for the accuracy of such CUSIP numbers. ∗ Preliminary, subject to change. No dealer, broker, salesperson or other person has been authorized to give any information or make any representations, other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale of the securities offered hereby shall under any circumstances create an implication that there has been no change in the affairs of the Municipality, or any party described herein, since the date hereof. Neither this Official Statement nor any statement which may have been made orally or in writing is to be construed as a contract with the owners of any of the Bonds. UPON ISSUANCE, THE BONDS WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND WILL NOT BE LISTED ON ANY STOCK OR OTHER SECURITIES EXCHANGE. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER FEDERAL, STATE OR OTHER GOVERNMENTAL ENTITY OR AGENCY WILL HAVE PASSED ON THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS OFFICIAL STATEMENT OR APPROVED THE BONDS FOR SALE. THE BOND ORDINANCES WILL NOT BE QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED. This Official Statement is submitted by the Municipality in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. The information set forth herein has been furnished by the Municipality and other sources which are believed to be reliable. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in affairs of the Municipality since the date hereof. This Official Statement including any supplement or amendment hereto, is intended to be deposited with one or more repositories. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the Federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. BDO USA, LLP, formally known as Mikunda Cottrell & Co., Inc., the Municipality’s independent auditor, has not been engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report.