(City Stormwater Improvements) Final Official Statement Series 2018
Total Page:16
File Type:pdf, Size:1020Kb
OFFICIAL STATEMENT NEW ISSUE RATINGS: Moody’s: Aa2 BOOK-ENTRY-ONLY Standard & Poor’s: AA+ (see “RATINGS”) In the opinion of McNair Law Firm, P.A., Co-Bond Counsel, assuming continued compliance by the City with the provisions of the Internal Revenue Code of 1986, as amended, as described herein, interest on the 2018 Bonds is excludable from gross income for federal income tax purposes under existing laws, regulations, rulings and judicial decisions. Interest on the 2018 Bonds is not an item of tax preference for purposes of an individual’s federal alternative minimum tax. The 2018 Bonds and the interest thereon will also be exempt from all State, county, municipal, school district and other taxes or assessments imposed within the State of South Carolina, except estate, transfer and certain franchise taxes. See “TAX EXEMPTION AND OTHER TAX MATTERS” herein. $37,900,000 CITY OF COLUMBIA, SOUTH CAROLINA STORMWATER SYSTEM REVENUE BONDS (CITY STORMWATER IMPROVEMENTS) SERIES 2018 (GREEN BONDS) Dated: Delivery Date Due: February 1, as shown on inside cover The City of Columbia, South Carolina (“City”), Stormwater System Revenue Bonds (City Stormwater Improvements), Series 2018 (Green Bonds) (“2018 Bonds”), are issuable in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), to which payments of principal, redemption premium, if any, and interest on the 2018 Bonds will be made. Individual purchases will be made in book-entry-only form, in denominations of $5,000 or any integral multiple thereof. So long as Cede & Co., as partnership nominee of DTC, is the registered owner of the 2018 Bonds, references herein to holders or registered owners of the 2018 Bonds means Cede & Co., and shall not mean the beneficial owners of the 2018 Bonds. Interest on the 2018 Bonds shall be payable on each February 1 and August 1 commencing August 1, 2019, until maturity or prior redemption. Principal on the 2018 Bonds will be payable in the years and amounts shown on the inside cover hereof. All capitalized terms used on this cover page, and not otherwise defined, are defined herein. The 2018 Bonds are being issued under the authority of the Constitution and laws of the State, including Title 6, Chapter 21, Code of Laws of South Carolina 1976, as amended, and the General Bond Ordinance No. 2018-13, enacted by the City Council, the governing body of the City (“City Council”), on May 15, 2018, as supplemented by the First Supplemental Ordinance No. 2018-14, enacted by the City Council on May 15, 2018 (as supplemented, collectively, “Ordinance”). The 2018 Bonds are being issued for the purposes of (i) funding certain improvements, extensions and enlargements to the stormwater system of the City (“System”); and (ii) paying the costs incurred in connection with the issuance of the 2018 Bonds. The 2018 Bonds, including the interest thereon, are payable solely from the Net Revenues of the System and are secured by a pledge of and lien on the Net Revenues thereof, and are further secured by a statutory lien on the System. THERE WILL BE NO DEBT SERVICE RESERVE FUND ESTABLISHED FOR OR FUNDED WITH THE PROCEEDS OF THE 2018 BONDS. THE 2018 BONDS WILL BE SUBJECT TO OPTIONAL AND MANDATORY REDEMPTION PRIOR TO MATURITY AS DESCRIBED HEREIN. THE 2018 BONDS DO NOT CONSTITUTE INDEBTEDNESS OF THE CITY WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION (OTHER THAN ARTICLE X, SECTION 14, PARAGRAPH 10 OF THE SOUTH CAROLINA CONSTITUTION AUTHORIZING OBLIGATIONS PAYABLE SOLELY FROM SPECIAL SOURCES NOT INVOLVING REVENUES FROM ANY TAX OR LICENSE) OR STATUTORY LIMITATION. THE 2018 BONDS SHALL NOT CONSTITUTE DEBT OF THE CITY, NOR A CHARGE, LIEN OR ENCUMBRANCE, LEGAL OR EQUITABLE, ON ANY PROPERTY OF THE CITY OR ON ANY INCOME, RECEIPTS OR REVENUES THEREOF, OTHER THAN THE NET REVENUES OF THE SYSTEM PLEDGED THERETO. NO RECOURSE SHALL BE HAD FOR THE PAYMENT OF THE 2018 BONDS OR THE INTEREST THEREON AGAINST THE GENERAL FUND OF THE CITY AND NEITHER THE CREDIT NOR THE TAXING POWER OF THE CITY SHALL BE DEEMED TO BE PLEDGED THERETO. THE FULL FAITH, CREDIT AND TAXING POWERS OF THE CITY ARE NOT PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE 2018 BONDS. The 2018 Bonds are offered when, as and if issued and delivered by the City, subject to the final approving opinions of McNair Law Firm, P.A., Columbia, South Carolina, and Johnson, Toal & Battiste, P.A., Columbia, South Carolina, Co-Bond Counsel. Certain legal matters will be passed on for the City by the City Attorney, Teresa A. Knox, Esquire, and for the Underwriters by their co-counsel, Parker Poe Adams & Bernstein LLP, Columbia, South Carolina, and Starkes Law Firm, P.A., Columbia, South Carolina. Stifel, Nicolaus & Company, Incorporated, Columbia, South Carolina, has served as Financial Advisor to the City in connection with the issuance of the 2018 Bonds. It is expected that the 2018 Bonds will be available for delivery through the facilities of DTC, on or about December 19, 2018. This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors should read the entire Official Statement to obtain information essential to the making of an informed investment decision. SIEBERT CISNEROS SHANK & CO., L.L.C. LOOP CAPITAL MARKETS This Official Statement is dated December 6, 2018. 2018 BONDS MATURITY SCHEDULE $20,200,000 Serial Bonds MATURITY INTEREST (FEBRUARY 1) AMOUNT($) RATE (%) YIELD (%) PRICE (%) CUSIP1 2020 $430,000 4.000% 1.860% 102.352% 198502 AA4 2021 660,000 4.000 1.940 104.250 198502 AB2 2022 685,000 5.000 2.020 108.955 198502 AC0 2023 720,000 5.000 2.060 111.544 198502 AD8 2024 760,000 5.000 2.140 113.788 198502 AE6 2025 795,000 5.000 2.230 115.754 198502 AF3 2026 835,000 5.000 2.340 117.342 198502 AG1 2027 875,000 5.000 2.420 118.906 198502 AH9 2028 920,000 5.000 2.500 120.265 198502 AJ5 2029 965,000 5.000 2.590 119.455 c 198502 AK2 2030 1,015,000 5.000 2.650 118.919 c 198502 AL0 2031 1,065,000 5.000 2.710 118.385 c 198502 AM8 2032 1,120,000 5.000 2.790 117.678 c 198502 AN6 2033 1,175,000 4.000 3.200 106.279 c 198502 AP1 2034 1,220,000 4.000 3.260 105.792 c 198502 AQ9 2035 1,270,000 4.000 3.330 105.227 c 198502 AR7 2036 1,320,000 5.000 3.040 115.500 c 198502 AS5 2037 1,385,000 5.000 3.090 115.071 c 198502 AT3 2038 1,455,000 5.000 3.130 114.728 c 198502 AU0 2039 1,530,000 5.000 3.160 114.472 c 198502 AV8 $17,700,000 Term Bonds $6,920,000 5.000% Term Bond, due February 1, 2043; Yield: 3.240%; Price 113.793%c; CUSIP1: 198502 AW6 $10,780,000 5.000% Term Bond, due February 1, 2048; Yield: 3.310%; Price 113.202%c; CUSIP1: 198502 AX4 ______________________ c Priced to the call date of February 1, 2028 1Copyright 2018, American Bankers Association. CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services (CGS), which is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. This information is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP identification number (“CUSIP”) have been assigned by an independent company not affiliated with the City or the Underwriter and are included solely for the convenience of the registered owners of the 2018 Bonds. Neither the City nor the Underwriters are responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the 2018 Bonds or as included herein. The CUSIP number for a specific maturity is subject to being changed after the execution and delivery of the 2018 Bonds as a result of various subsequent actions including, but not limited to, a prepayment in whole or in part or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the 2018 Bonds. It is anticipated that a CUSIP number will be printed on each 2018 Bond, but neither the failure to print this number on any 2018 Bond nor any error with respect to that CUSIP constitutes cause for failure or refusal by the purchaser of that 2018 Bond to accept delivery of and pay for that 2018 Bond according to the terms of the purchaser’s proposal. All expenses regarding printing CUSIPs on the 2018 Bonds shall be paid for by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of CUSIPs shall be the responsibility of and shall be paid for by the Underwriters. Further, the City is not responsible for obtaining the CUSIPs. i This Official Statement does not constitute an offering of any security other than the original offering of the 2018 Bonds identified on the cover. No dealer, broker, salesman or other person has been authorized to give any information or to 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 on as having been authorized by the City.