• Abstract and Figures
• Public Full-text

PRELIMINARY OFFICIAL STATEMENT DATED FEBRUARY 6, 2020 New Issue Bond Rating: Standard & Poor’s, “AA” (Stable Outlook) BOOK-ENTRY ONLY BAM Insured S&P Underlying Rating: “A-” (Negative Outlook) (See “BOND RATING” herein) In the opinion of Stevens & Lee, P.C., Forty Fort, Pennsylvania, Bond Counsel, assuming continuing compliance by 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 2020A Notes is not includable in gross income under Section 103(a) of the Code and interest on the 2020A Notes is not an item of tax preference for purposes of the federal alternative minimum taxes on individuals. See “TAX MATTERS” in this Official Statement. Other provisions of the Code may affect purchasers and holders of the Notes. See “TAX MATTERS” herein for a brief description of these provisions. Interest on the 2020B Notes is includable in gross income for federal income tax purposes. Under the laws of the Commonwealth of Pennsylvania, the Notes and interest on the Notes 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 Notes 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 Notes shall be subject to State and local taxation within the Commonwealth of Pennsylvania. The School District has designated and determined under and for purposes of section 265(b)(3) of the Code to qualify each of the 2020A Notes as a “qualified tax-exempt obligation” as such phrase is defined in the Code. $11,795,000* CRESTWOOD SCHOOL DISTRICT (Luzerne County, Pennsylvania) $8,585,000* GENERAL OBLIGATION NOTES, SERIES A OF 2020 $3,210,000* FEDERALLY TAXABLE GENERAL OBLIGATION NOTES, SERIES B OF 2020 DATED: Date of Delivery INTEREST PAYABLE: September 1 and March 1 PRINCIPAL DUE: March 1, as shown herein FIRST INTEREST PAYMENT DATE: September 1, 2020 FORM: Book-Entry Only DENOMINATION: Integral multiples of $5,000 PAYMENT OF PRINCIPAL AND INTEREST: The General Obligation Notes, Series A of 2020 (the “2020A Notes”) and the Federally Taxable General Obligation Notes, Series of B 2020 (the “2020B Notes” and with the 2020A Notes, collectively herein after referred to as the “2020 Notes” or the “Notes”), will be issued by the Crestwood School District, Luzerne County, Pennsylvania (the “School District” or “Issuer”), as fully registered notes and, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Notes. Purchases of the Notes will be made only in book-entry form, and purchasers will not receive certificates representing their interests in the Notes. So long as DTC, or its nominee, Cede & Co., is the registered owner of the Notes, payments of the principal and interest on the Notes will be made by the Paying Agent directly to DTC. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursements of such payments to Beneficial Owners of the Notes is the responsibility of the DTC Participants and the Indirect Participants. See “BOOK-ENTRY ONLY SYSTEM” herein. REDEMPTION: The Notes are subject to optional and mandatory redemption prior to their stated maturity dates. (See “REDEMPTION OF NOTES” herein.) SECURITY FOR THE NOTES: The Notes are general obligation notes of the School District, and except as more fully described herein under the heading “LEGISLATION AFFECTING LOCAL TAXING POWERS OF SCHOOL DISTRICTS – ACT I OF SPECIAL SESSION 2006 (TAXPAYER RELIEF ACT),” the full faith, credit and taxing power of the School District have been pledged for the punctual payment of the principal of and interest on the Notes, when due, which taxing power may be limited as described herein. The School District has established with the Sinking Fund Depository a sinking fund for the Notes into which monies sufficient for payment of the principal of and interest on the Notes will he deposited not later than the date fixed for the disbursement thereof. The Notes are payable from the general revenues of the School District, which on the date of issuance include, inter alia, the revenues derived from the ad valorem taxes which may be levied on all taxable real estate within the School District. See also sections herein entitled “TAXES AND TAXING POWERS OF THE SCHOOL DISTRICT” and “LEGISLATION AFFECTING LOCAL TAXING POWERS OF SCHOOL DISTRICTS – ACT 1 OF SPECIAL SESSION 2006 (TAXPAYER RELIEF ACT).” USE OF FUNDS: Proceeds of the 2020A Notes will be used to provide funds to: (1) to fund various energy saving capital projects; and (2) pay the costs and expenses related to the issuance of the 2020A Notes. Proceeds of the 2020B Notes will be used to provide funds to: (1) refund a portion of the School District’s outstanding General Obligation Bonds, Series of 2014 (the “2014 Bonds”); (2) refund a portion of the School District’s outstanding General Obligation Bonds, Series of 2015 (the “2015 Bonds”); (3) refund a portion of the School District’s outstanding General Obligation Bonds, Series of 2016 (the “2016 Bonds”); (4) refund a portion of the School District’s outstanding General Obligation Bonds, Series of 2017 (the “2017 Bonds”); and (5) pay the costs and expenses related to the issuance of the 2020B Notes. BOND INSURANCE: The scheduled payment of principal of and interest on the Notes when due will be guaranteed under a municipal bond insurance policy issued concurrently with the delivery of the Notes by Build America Mutual Assurance Company (“BAM” or the “Insurer”). AUTHORIZATION FOR ISSUANCE: The Notes are being issued in accordance with the Local Government Unit Debt Act, as amended (the “Act”) of the Commonwealth of Pennsylvania, as codified by the Act of December 19, 1996, P.L. 1158, No. 177, as amended, with the approval of the Pennsylvania Department of Community and Economic Development and pursuant to a Resolution duly adopted by the Board of School Directors of the School District on October 23, 2019 (the “Resolution”). CONTINUING DISCLOSURE UNDERTAKING: The School District has agreed to provide, or cause to be provided, in a timely manner, certain information in accordance with the requirements of Rule 15c2-12, as promulgated under the Securities Exchange Act of 1934, as amended and interpreted (the “Rule”). (See “CONTINUING DISCLOSURE UNDERTAKING” herein.) BONDHOLDER RISKS: AN INVESTMENT IN THE BONDS INVOLVES RISK. PROSPECTIVE INVESTORS SHOULD READ THIS ENTIRE PRELIMINARY OFFICIAL STATEMENT, AND IN PARTICULAR THE SECTIONS ENTITLED “SECURITY FOR THE BONDS”, “INVESTMENT CONSIDERATIONS” AND “Summary of Recent Financial History and Current Financial Status” BEFORE DECIDING TO PURCHASE ANY OF THE BONDS. AMONG OTHER SOURCES OF FUNDING, THE SCHOOL DISTRICT HAS RELIED AND CURRENTLY RELIES UPON RECENT LOCAL TAX RATE INCREASES, BUDGET CUTS, DEBT RESTRUCTURING AND OTHER BUDGETARY MEASURES TO ADDRESS ONGOING STRUCTURAL DEFICITS IN ITS OPERATING BUDGET AND PROVIDE SUFFICIENT FUNDS TO PAY ITS OPERATING EXPENSES AND LIABILITIES, INCLUDING DEBT SERVICE. LEGAL APPROVALS: THE NOTES ARE OFFERED, SUBJECT TO PRIOR SALE, WITHDRAWAL OR MODIFICATION, WHEN, AS AND IF ISSUED AND RECEIVED BY THE UNDERWRITER AND SUBJECT TO THE APPROVING LEGAL OPINION OF STEVENS & LEE, P.C., FORTY FORT, PENNSYLVANIA, BOND COUNSEL, TO BE FURNISHED UPON DELIVERY OF THE NOTES. CERTAIN LEGAL MATTERS WILL BE PASSED UPON BY JOHN G. DEAN, ESQUIRE, OF ELLIOTT GREENLEAF & DEAN, WILKES-BARRE, PENNSYLVANIA, SOLICITOR TO THE SCHOOL DISTRICT. THE NOTES ARE EXPECTED TO BE DELIVERED IN NEW YORK, NEW YORK ON OR ABOUT _____ 2020. DATED: ____________ This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other changes without notice. The Bonds may not bedelivered soldin final form. nor Under no may circumstances shall this Preliminary offers Official Statement constitute an offer to sellto buy or the solicitation buy, of nor shall an offer therebe accepted to be any sale prior of Bonds in any jurisdiction offer, in which solicitationto thesuch or sale would be time of the Official Statement is unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction. * Preliminary, subject to change $8,585,000* CRESTWOOD SCHOOL DISTRICT (Luzerne County, Pennsylvania) GENERAL OBLIGATION NOTES, SERIES A OF 2020 DATED: Date of Delivery INTEREST PAYABLE: September 1 and March 1 PRINCIPAL DUE: March 1 of each year, as shown below FIRST PAYMENT DATE: September 1, 2020 MATURITY SCHEDULE Year Principal Amount Interest Rate Yield Price (1) CUSIPs (2) 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 $____ ___% Term Notes due March 1, ___ to yield ___% price ___% (1) Based on expected settlement date of , 2020. (2) The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an organization not affiliated with the Township or the Underwriter, and such parties are not responsible for the selection or use of the CUSIP numbers. The CUSIP numbers are included solely for the convenience of bondholders and no representation is made as to the correctness of such CUSIP numbers. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors including, but not limited to, the refundings or defeasance of such issue or the use of secondary market financial products. Neither the Township nor the Underwriter have agreed to, and there is no duty or obligation to, update this Official Statement to reflect any change or correction in the CUSIP numbers set forth above.

Load more

  136

Copy Link