The Bonds Are Special Limited Obligations of the Authority. Neither
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NEW ISSUE – Book Entry Only Ratings: S&P “A” Stable Outlook (Underlying Rating) “A+” Stable Outlook (Intercept Program Rating) “AA” Insured Bond Rating (Insured Rating) (See “RATINGS” herein) In the opinion of Stevens & Lee, P.C., Reading, Pennsylvania, Bond Counsel, assuming continuing compliance by the Authority and the School District with certain covenants to comply with provisions of the Internal Revenue Code of 1986, as amended (the “Code”) and any applicable regulations thereunder, interest on the 2014B-2 Bonds is not includable in gross income under Section 103(a) of the Code and interest on the 2014B-2 Bonds is not an item of tax preference for purposes of the federal individual and corporate alternative minimum taxes. See “Tax Matters” in this Official Statement. Other provisions of the Code may affect purchasers and holders of the 2014B-2 Bonds. See “Tax Exemption and Certain Other Tax Matters” herein for a brief description of these provisions. Interest on the 2014A Bonds and 2014B-1 Bonds is included in the gross income of the owners of the 2014A Bonds and the 2014B-1 Bonds for federal income tax purposes. See “Tax Exemption and Certain other Tax Matters” herein. Under the laws of the Commonwealth of Pennsylvania, the Bonds and interest on the Bonds shall be free from taxation for State and local purposes within the Commonwealth of Pennsylvania, but this exemption does not extend to gift, estate, succession or inheritance taxes or any other taxes not levied or assessed directly on the Bonds or the interest thereon. Under the laws of the Commonwealth of Pennsylvania, profits, gains or income derived from the sale, exchange or other disposition of the Bonds shall be subject to State and local taxation within the Commonwealth of Pennsylvania. $51,515,000 STATE PUBLIC SCHOOL BUILDING AUTHORITY (Commonwealth of Pennsylvania) School Revenue Bonds (The School District of the City of Harrisburg Project) $23,880,000 Federally Taxable Series A of 2014 $6,740,000 Federally Taxable Series B-1 of 2014 $20,895,000 Series B-2 of 2014 DATED: Date of Delivery INTEREST PAYABLE: June 1 and December 1 PRINCIPAL DUE: December 1 as shown on inside front cover FIRST INTEREST PAYMENT: December 1, 2014 The Federally Taxable School Revenue Bonds (The School District of the City of Harrisburg Project) Series A of 2014, in the principal amount of $23,880,000 (the “2014A Bonds”), the Federally Taxable School Revenue Bonds (The School District of the City of Harrisburg Project) Series B-1 of 2014, in the principal amount of $6,740,000 (the “2014B-1 Bonds”), and the School Revenue Bonds (The School District of the City of Harrisburg Project) Series B-2 of 2014, in the principal amount of $20,895,000 (the “2014B-2 Bonds,” and together with the 2014B-1 Bonds, the “2014B Bonds,” and together with the 2014A Bonds, the “Bonds”) will be issued in fully registered form without coupons 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. Purchases of beneficial ownership interests in the Bonds will be made in book-entry form only in denominations of $5,000 or integral multiples thereof, and Beneficial Owners will not receive certificates representing their interests in the Bonds. While Cede & Co. is the registered owner, references herein to registered owners of the Bonds shall mean Cede & Co. and not the Beneficial Owners, and Manufacturers and Traders Trust Company, as trustee for the Bonds, will pay principal of and interest on the Bonds to DTC, which will remit such principal and interest to its participants (as defined herein), which will in turn remit such principal and interest to the Beneficial Owners of the Bonds, as more fully described herein. See “THE BONDS – Book-Entry Only System” herein. The 2014A Bonds will be issued under a Second Supplemental Trust Indenture dated as of June 15, 2014, amending and supplementing that certain Trust Indenture dated as of May 1, 2009, as previously amended and supplemented (collectively, the “2014A Indenture”), by and between the State Public School Building Authority (the “Authority”) and Manufacturers and Traders Trust Company, as trustee (the “2014A Trustee”) and will be equally and ratably secured under the 2014A Indenture by an assignment and pledge by the Authority to the 2014A Trustee of payments to be made to the Authority by the School District of the City of Harrisburg, Dauphin County, Pennsylvania (the “School District”) pursuant to the provisions of a Third Amendment to Sublease Agreement dated as of June 15, 2014, amending and supplementing that certain Sublease Agreement dated as of May 1, 2009, as previously amended and supplemented (collectively, the “Sublease”). The 2014B Bonds will be issued under a Trust Indenture dated as of June 15, 2014 (the “2014B Indenture”) between the Authority and Manufacturers and Traders Trust Company, as trustee (the “2014B Trustee,” and together with the 2014A Trustee, the “Trustee”) and will be equally and ratably secured under the 2014B Indenture by an assignment and pledge by the Authority to the Trustee of payments to be made to the Authority by the School District pursuant to the provisions of a Loan Agreement dated as of June 15, 2014 (the “Loan Agreement”). The School District will deliver its General Obligation Bonds to the Authority evidencing its obligations under the Loan Agreement with respect to the 2014B Bonds. The Bonds are subject to redemption prior to maturity as more fully described herein. The Bonds are special limited obligations of the Authority. Neither the principal or redemption price of the Bonds, nor the interest accruing thereon, shall constitute a general indebtedness of the Authority or an indebtedness of the Commonwealth of Pennsylvania (the “Commonwealth”) or any political subdivision thereof (except the School District’s obligations under the Sublease, the Loan Agreement and the General Obligation Bonds) within the meaning of any constitutional or statutory provision whatsoever; constitute a charge against the general credit of the Authority or the general credit or taxing power of the Commonwealth or any political subdivision thereof (except the School District’s obligations under the Sublease, the Loan Agreement and the General Obligation Bonds); or be deemed to be a general obligation of the Authority or an obligation of the Commonwealth or any political subdivision thereof (except the School District’s obligations under the Sublease, the Loan Agreement and the General Obligation Bonds) thereof. The Authority has no taxing power. Payments of debt service on the 2014A Bonds and 2014B-1 Bonds are not eligible for exception from the provisions of Act 1, as amended. For a discussion on recent legislation affecting the taxing powers of the School District and its applicability to the Bonds, see “The Taxpayer Relief Act (Act 1), as Amended – The Bonds” herein. The scheduled payment of principal of and interest on the Insured Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Insured Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY. MATURITIES, AMOUNTS, RATES AND PRICES See Inside Front Cover 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. The Bonds are offered, subject to prior sale and withdrawal of such offer without notice, when, as and if issued by the Authority and received by the Underwriter, and subject to approval of legality of the Bonds by Stevens & Lee, P.C., Reading, Pennsylvania, Bond Counsel to the Authority. Certain legal matters will be passed upon for the Authority by Hartman Underhill & Brubaker, LLC, Lancaster, Pennsylvania, for the School District by Dilworth Paxson LLP, Harrisburg, Pennsylvania, and for the Underwriter by its counsel, McNees Wallace & Nurick LLC, Harrisburg, Pennsylvania. Susquehanna Group Advisors, Inc., Harrisburg, Pennsylvania, will act as Financial Advisor to the School District in connection with the Bonds. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about June 30, 2014. The date of this Official Statement is June 11, 2014. $51,515,000 STATE PUBLIC SCHOOL BUILDING AUTHORITY (Commonwealth of Pennsylvania) School Revenue Bonds (The School District of the City of Harrisburg Project) $23,880,000 Federally Taxable Series A of 2014 $6,740,000 Federally Taxable Series B-1 of 2014 $20,895,000 Series B-2 of 2014 Dated: Date of Delivery Principal Due: December 1, as shown below Interest Due: June 1 and December 1 First Interest Payment: December 1, 2014 MATURITY SCHEDULE – FEDERALLY TAXABLE 2014A BONDS December 1 Amount Rate Price1 CUSIP*No. 2016 $175,000 1.273% 100.000 85732TGD8 2017 $4,820,000 1.965% 100.000 85732TGE6 2018 $8,575,000 2.406% 100.000 85732TGF3 2019 $8,765,000 2.836% 100.000 85732TGG1 2020 $1,545,000 3.284% 100.000 85732TGH9 MATURITY SCHEDULE – FEDERALLY TAXABLE 2014B-1 BONDS December 1 Amount Rate Price1 CUSIP*No. 2017 $5,000 2.015% 100.000 85732TGJ5 2018 $5,000 2.436% 100.000 85732TGK2 2019 $5,000 2.886% 100.000 85732TGL0 2020 $150,000 3.314% 100.000 85732TGM8 2021 $400,000 3.614% 100.000 85732TGN6 2022 $3,030,000 3.829% 100.000 85732TGP1 2023 $3,145,000 4.079% 100.000 85732TGQ9 1 Based upon expected settlement date of June 30, 2014 *The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an organization not affiliated with the Authority, the School District or the Underwriter, and such parties are not responsible for the selection or use of the CUSIP numbers.