CITY of RICHMOND, VIRGINIA January 15,2017 Date Ofdelivery $490,865,000* Series 2016A Interest Payable: Due: Form
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PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 10, 2016 NEW ISSUE BOOK-ENTRY ONLY In the opinion of Orrick, Herrington & Sutcliffe LLP and Lewis, Munday, Harrell & Chambliss (“Bond Counsel”), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”). Bond Counsel is of the further opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. In the opinion of Bond Counsel, interest on the Bonds is exempt from income taxation by the Commonwealth of Virginia. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds. See “TAX MATTERS” herein. $490,865,000* CITY OF RICHMOND, VIRGINIA Public Utility Revenue and Refunding Bonds Series 2016A RATINGS: Moody’s: Aa2 Standard & Poor’s: AA Fitch: AA (See “Ratings” herein) Dated: Date of Delivery Due: January 15, as shown herein Denomination: $5,000 and Integral Multiples Thereof Interest Payable: January 15 and July 15 First Interest Payment Date: January 15, 2017 Form: Registered, Book-Entry Only The Public Utility Revenue and Refunding Bonds, Series 2016A (the “Bonds”), are limited obligations of the City of Richmond, Virginia (the “City”), payable solely from certain revenues derived by the City from its natural gas, water and wastewater utilities, as described herein, and other funds pledged for their payment under the terms of the Master Indenture and the Twentieth Supplemental Indenture (as such terms are defined herein). Neither the faith and credit nor the taxing power of the Commonwealth of Virginia, the City nor any other political subdivision of the Commonwealth of Virginia are pledged to the payment of principal of or premium, if any, or interest on the Bonds. The Bonds are issuable in fully registered form, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), which will act as securities depository for the Bonds. Individual purchases of beneficial ownership interest in the Bonds will be made in book-entry form only, and individual purchasers will not receive physical delivery of Bond certificates. Individual purchases of the Bonds will be in denominations of $5,000 and integral multiples thereof and will bear interest from the date of delivery, payable semi-annually on each January 15 and July 15, commencing January 15, 2017. Principal of and premium, if any, and interest on the Bonds will be made by wire transfer to Cede & Co., as nominee for DTC, for disbursement to DTC participants to be disbursed subsequently to the Beneficial Owners of the Bonds, as described in the subsection herein “Book-Entry Only System.” The Bonds are subject to optional and mandatory sinking fund redemption prior to their stated maturities, as more fully set forth herein. MATURITY SCHEDULE – SEE INSIDE COVER The Bonds are offered for delivery when, as and if issued and received by the Underwriters (as defined hereinafter) subject to the approving opinions of Bond Counsel, Orrick, Herrington & Sutcliffe LLP, Washington, D. C. and Lewis, Munday, Harrell & Chambliss, Richmond, Virginia. Certain legal matters will be passed upon for the City by Allen L. Jackson, Esquire, City Attorney, and for the Underwriters by their counsel, McGuireWoods LLP, Richmond, Virginia. It is expected that the Bonds will be available for delivery through the facilities of DTC, on or about December 7, 2016.* Wells Fargo Securities BofA Merrill Lynch Raymond James Siebert Cisneros Shank & Co., L.L.C. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Dated: December __, 2016 This Preliminary Official Statement and the information contained herein are subject to change, completion and amendment without notice. The Bonds may not be sold nor may an offer to buy be accepted prior to the time Official Statement to an offer not be sold nor may The Bonds may This Preliminary completion and amendment without notice. contained herein are subject to change, Official Statement and the information solicitation any jurisdictionany sale of the Bonds in in which such offer, nor shall there be buy, to Under no circumstances shall this Preliminary to sell or the solicitation of an offer Official Statement constitute an offer form. in final is delivered prior of such jurisdiction. or qualification under the securities to registration be unlawful laws or sale would * Preliminary, subject to change $490,865,000* City of Richmond, Virginia Public Utility Revenue and Refunding Bonds, Series 2016A Maturity Schedule* (Base CUSIP Number 765433) Maturity* Principal Interest Price/ CUSIP Maturity* Principal Interest Price/ CUSIP January 15 Amount* Rate Yield Suffix January 15 Amount* Rate Yield Suffix 2017 $ 4,815,000 2032 $31,745,000 2018 10,080,000 2033 33,335,000 2019 10,475,000 2034 13,460,000 2020 11,005,000 2035 13,995,000 2021 11,555,000 2036 14,560,000 2022 14,930,000 2037 15,145,000 2023 15,690,000 2038 14,380,000 2024 16,470,000 2039 14,850,000 2025 22,195,000 2040 15,590,000 2026 23,305,000 2041 8,155,000 2027 24,475,000 2042 7,135,000 2028 25,690,000 2043 7,420,000 2029 27,420,000 2044 7,715,000 2030 28,795,000 2045 7,985,000 2031 30,230,000 2046 8,265,000 * Preliminary, subject to change _______________________________ Note: Copyright 2009, American Bankers Association. CUSIP data herein is provided by Standard and Poor’s, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Service. The CUSIP number is provided for convenience of reference only. Neither the City, the Financial Advisor nor the Underwriters take any responsibility for the accuracy of such CUSIP number. CITY OF RICHMOND, VIRGINIA ELECTED OFFICIALS MAYOR Dwight C. Jones CITY COUNCIL Michelle R. Mosby, President Christopher A. Hilbert, Vice President Parker C. Agelasto Jonathan T. Baliles Kathy C. Graziano Cynthia I. Newbille Ellen F. Robertson Charles R. Samuels Reva M. Trammell ADMINISTRATION Selena Cuffee-Glenn, Chief Administrative Officer (“CAO”) Lenora G. Reid, Deputy CAO – Finance and Administration John J. Buturla, Interim Deputy CAO – Operations Peter Lee Downey, Jr., Deputy CAO – Economic and Community Development Allen L. Jackson, Esquire, City Attorney FISCAL MANAGEMENT John B. Wack, Director of Finance James P. Duval, Jr., Debt and Investment Portfolio Manager Jay A. Brown, Director of Budget and Strategic Planning Robert Steidel, Director of Public Utilities BOND COUNSEL Orrick, Herrington & Sutcliffe LLP Lewis, Munday, Harrell & Chambliss CERTIFIED PUBLIC ACCOUNTANTS Grant Thornton LLP FINANCIAL ADVISOR Davenport & Company LLC [THIS PAGE INTENTIONALLY LEFT BLANK] TABLE OF CONTENTS PAGE SECTION ONE: INTRODUCTION ........................................................................................................................... 1 THE ISSUER ......................................................................................................................................................... 1 THE SYSTEM ....................................................................................................................................................... 2 THE BONDS ......................................................................................................................................................... 2 DELIVERY ............................................................................................................................................................. 3 ADDITIONAL INFORMATION .............................................................................................................................. 3 SECTION TWO: THE BONDS ................................................................................................................................. 4 AUTHORIZATION OF THE BONDS ..................................................................................................................... 4 USE OF PROCEEDS ............................................................................................................................................ 4 Plan of Refunding ............................................................................................................................................. 4 Estimated Sources and Uses of Funds ............................................................................................................ 5 DESCRIPTION OF THE BONDS .......................................................................................................................... 5 Optional Redemption ........................................................................................................................................ 5 Mandatory Redemption ....................................................................................................................................