City of Philadelphia, Pennsylvania
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NEW ISSUE—BOOK-ENTRY ONLY RATINGS: Non-Insured Bonds: Moody’s: “A2” S&P: “BBB” Fitch: “A-” Insured Bonds: Moody’s: “Aa3” S&P: “AA+” See “Ratings” herein In the opinion of Co-Bond Counsel, interest on the 2011 Bonds will be excluded from gross income for federal income tax purposes under existing statutes, regulations, rulings and court decisions, subject to the conditions described in “TAX MATTERS” herein. In addition, interest on the 2011 Bonds will not be treated as an item of tax preference under Section 57 of the Internal Revenue Code of 1986, as amended (the “Code”), for purposes of the individual and corporate alternative minimum taxes; however, under the Code, such interest may be subject to certain other taxes affecting corporate holders of the 2011 Bonds. Under the existing laws of the Commonwealth of Pennsylvania, interest on the 2011 Bonds will be free from Pennsylvania personal income taxation and Pennsylvania corporate net income taxation but such exemption does not extend to gift, estate, succession or inheritance taxes or any other taxes not levied or assessed directly on the 2011 Bonds or the interest thereon. For a more complete discussion, see “TAX MATTERS” herein. $253,720,000 CITY OF PHILADELPHIA, PENNSYLVANIA General Obligation Bonds, Series 2011 Dated: Date of Delivery Due: As shown on the inside front cover The $253,720,000 aggregate principal amount of General Obligation Bonds, Series 2011 (the “2011 Bonds”) of The City of Philadelphia, Pennsylvania (the “City”) will be issued as fixed rate obligations in registered form in the denomination of $5,000 and any integral multiple thereof (“Authorized Denominations”). Interest on the 2011 Bonds is payable semi-annually on February 1 and August 1 of each year, commencing August 1, 2011. The 2011 Bonds will mature on the dates and in the amounts, and bear interest from the date of delivery at the rates, all as shown on the inside front cover. Payments of principal of and interest on the 2011 Bonds will be made by U.S. Bank National Association, as Fiscal Agent, as described herein under “The 2011 Bonds.” The 2011 Bonds are being issued for the purpose of (a) currently refunding a portion of the City’s (i) outstanding General Obligation Refunding Bonds, Series 1998 and (ii) outstanding General Obligation Bonds, Series 2001, (b) funding a portion of the City’s capital program, and (c) paying costs relating to the issuance of the 2011 Bonds. The 2011 Bonds, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the 2011 Bonds. Purchases of beneficial ownership interests in the 2011 Bonds will be made in book-entry only form in Authorized Denominations. Principal of and interest on the 2011 Bonds is payable directly to Cede & Co. for redistribution to DTC Participants and in turn to Beneficial Owners as described herein. Purchasers of the 2011 Bonds will not receive certificates representing their ownership interest in the 2011 Bonds purchased. See “The 2011 Bonds -Book-Entry System” herein. The 2011 Bonds are general obligations of the City, and the full faith, credit and taxing power of the City are pledged for the payment thereof. The scheduled payment of principal of and interest on the 2011 Bonds maturing on August 1, 2016 (3.250% and 5.000% interest rates), August 1, 2020 (4.250%, 4.500% and 5.000% interest rates), August 1, 2023 and August 1, 2026 (collectively, the “Insured Bonds”) when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Insured Bonds by ASSURED GUARANTY MUNICIPAL CORP. THE 2011 BONDS ARE SUBJECT TO MANDATORY AND OPTIONAL REDEMPTION PRIOR TO MATURITY AS MORE FULLY DESCRIBED IN THIS OFFICIAL STATEMENT. This cover page contains information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement, including the Appendices, which are an integral part hereof, to obtain information essential to making an informed investment decision regarding the 2011 Bonds. The 2011 Bonds are offered when, as and if issued by the City, subject to the approval of the legality of the issuance of the 2011 Bonds by Cozen O’Connor and Grant & Lebowitz, LLC, Co-Bond Counsel, both of Philadelphia, Pennsylvania. Certain legal matters will be passed upon for the City by the Office of the City Solicitor and for the Underwriters by Dilworth Paxson LLP, Philadelphia, Pennsylvania and Gonzalez Saggio & Harlan LLP, New York, New York. It is anticipated that the 2011 Bonds will be available for book-entry delivery to DTC in New York, New York on or about April 19, 2011. J.P. Morgan Citi Loop Capital Markets Janney Montgomery Scott Jefferies & Company PNC Capital Markets Ramirez & Co., Inc. Dated: April 7, 2011 $253,720,000 City of Philadelphia, Pennsylvania General Obligation Bonds, Series 2011 MATURITY SCHEDULE $156,420,000 Serial Bonds Maturity Principal Interest (August 1) Amount Rate Yield Price CUSIP* 2011 $14,365,000 2.000% 1.110% 100.250 717813ML0 2012 6,665,000 2.000% 1.650% 100.441 717813MM8 2012 16,070,000 4.000% 1.650% 102.969 717813NC9 2013 195,000 2.000% 2.150% 99.666 717813MN6 2013 13,675,000 4.000% 2.150% 104.098 717813ND7 2014 12,510,000 5.000% 2.590% 107.535 717813NE5 2015 1,650,000 3.000% 3.120% 99.519 717813MP1 2015 8,985,000 5.000% 3.120% 107.478 717813NF2 2016** 3,410,000 3.250% 3.400% 99.276 717813MQ9 2016** 9,510,000 5.000% 3.400% 107.672 717813NG0 2017 525,000 3.750% 3.970% 98.782 717813MR7 2017 11,165,000 5.250% 3.970% 107.050 717813NH8 2018 1,385,000 4.100% 4.310% 98.693 717813MS5 2018 10,920,000 5.250% 4.310% 105.815 717813NJ4 2019 2,295,000 4.500% 4.620% 99.175 717813MT3 2019 9,820,000 5.250% 4.620% 104.288 717813NK1 2020** 7,360,000 4.250% 4.610% 97.299 717813NN5 2020** 3,405,000 4.500% 4.610% 99.170 717813MU0 2020** 1,920,000 5.000% 4.610% 102.911 717813NL9 2021 2,190,000 4.875% 5.010% 98.917 717813MV8 2021† 820,000 5.250% 5.010% 101.756 717813NM7 2022 3,165,000 5.000% 5.090% 99.226 717813MW6 2023** 3,325,000 5.000% 5.050% 99.538 717813MX4 2024 3,500,000 5.250% 5.330% 99.236 717813MY2 2025 3,695,000 5.375% 5.450% 99.253 717813MZ9 2026** 3,895,000 5.250% 5.320% 99.265 717813NA3 $23,235,000 5.875% Term Bonds due August 1, 2031, Price 98.764, CUSIP No. 717813NB1* $31,280,000 6.00% Term Bonds due August 1, 2036, Price 98.505, CUSIP No. 717813MJ5* $42,785,000 6.50% Term Bonds due August 1, 2041†, Price 102.081, CUSIP No. 717813MK2* ______________________ * Copyright 2011, American Bankers Association. CUSIP data herein is provided by Standard & 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 Services. CUSIP numbers are provided for convenience or reference only and no representation is made as to the accuracy of such CUSIP numbers. Neither the City nor the Underwriters take any responsibility for the accuracy of such CUSIP numbers. The CUSIP number for a specific maturity is subject to being changed after the issuance of the 2011 Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity. Neither the City nor the Underwriters have agreed to, and there is no duty or obligation to, update this Official Statement to reflect any change or correction in such CUSIP numbers. ** Insured by Assured Guaranty Municipal Corp. † Price/Yield to first optional call date. THE CITY OF PHILADELPHIA, PENNSYLVANIA _______________________ MAYOR HONORABLE MICHAEL A. NUTTER ______________________ _______________________ MAYOR’S CHIEF OF STAFF CLARENCE D. ARMBRISTER ______________________ MAYOR’S CABINET Richard Negrin, Esquire ................ Deputy Mayor for Administration and Coordination/Managing Director Rob Dubow ...................................................................................................................... Director of Finance Shelley R. Smith ........................................................................................................................ City Solicitor Rina Cutler ............................................................................. Deputy Mayor of Transportation and Utilities Everett A. Gillison ....................................................................................... Deputy Mayor for Public Safety Alan Greenberger .................................................. Deputy Mayor for Planning and Economic Development and Commerce Director Donald F. Schwarz, M.D. ................. Deputy Mayor for Health and Opportunity and Health Commissioner Michael DiBerardinis ............................................................................ Parks and Recreation Commissioner Desiree Peterkin-Bell ........................................................................................ Director of Communications Thomas Jones ............................................................................................. Acting Chief Information Officer Katherine Gajewski ................................................................................................. Director of Sustainability Terry Gillen .......................................................................................................... Director of Federal Affairs Melanie Johnson ............................................................................................................. City Representative