$129,190,000 JACKSONVILLE AVIATION AUTHORITY UBS Investment Bank
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NEW ISSUE BOOK-ENTRY ONLY RATINGS: Moody’s: “Aaa” (Insured)/ “A2” (Underlying) S&P: “AAA” (Insured)/ “A-” (Underlying) Fitch: “AAA” (Insured)/ “A” (Underlying) In the opinion of Foley & Lardner LLP, Jacksonville, Florida, Bond Counsel, assuming compliance with certain provisions of the Bond Resolution, under existing law, interest on the Series 2006 Bonds is excluded from gross income for federal income tax purposes, except for the interest on any Series 2006 Bond during any period while such Series 2006 Bond is held by a “substantial user” of the facilities financed with the proceeds of the Series 2006 Bonds or a “related person,” as such terms are used in Section 147 of the Internal Revenue Code of 1986, as amended. The Series 2006 Bonds are “private activity bonds,” the interest on which is an item of tax preference for all taxpayers for purposes of the federal alternative minimum tax. In the opinion of Bond Counsel, under existing law, the Series 2006 Bonds and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes on interest, income or profits on debt obligations owned by corporations, as defined in Chapter 220, Florida Statutes, as amended. See “TAX MATTERS” herein for further discussion of the tax implications of ownership of the Series 2006 Bonds. $129,190,000 JACKSONVILLE AVIATION AUTHORITY REVENUE BONDS SERIES 2006 (AMT) Dated: Date of Delivery Due: October 1, as shown on the inside front cover The Series 2006 Bonds will be issued in fully registered form in denominations of $5,000 or any integral multiple thereof and will bear interest at the rates per annum, and mature on the dates and in the principal amounts, as set forth below. Interest on each Series 2006 Bond is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2007, by check or draft mailed to the person in whose name such Series 2006 Bond is registered on the registration books maintained by The Bank of New York Trust Company, N.A., Jacksonville, Florida, as Paying Agent, or any successor thereto, on the fifteenth day of the calendar month next preceding the month in which such interest payment is due. The principal of the Series 2006 Bonds is payable upon presentation and surrender of the Series 2006 Bonds when due at the office of the Paying Agent. Upon initial issuance, the Series 2006 Bonds will be registered in the name of and held by Cede & Co., as nominee for The Depository Trust Company (“DTC”), an automated depository for securities in a clearinghouse for securities transactions. So long as DTC, or its nominee, is the registered owner of the Series 2006 Bonds, payment of the principal of, premium, if any, and interest on the Series 2006 Bonds will be provided directly to DTC or its nominee, which is to remit such payments to the DTC Participants (as defined herein), which in turn are to remit such payments to Beneficial Owners (as defined herein) of the Series 2006 Bonds. See “DESCRIPTION OF THE SERIES 2006 BONDS--Book-Entry Only System” herein. The principal of, interest and premium, if any, on the Series 2006 Bonds shall be payable from (i) Net Operating Revenues of the Airport System and Transfers (including Available PFC Revenues), subject to the obligation of the Jacksonville Aviation Authority (the “Authority”) to make payments into the Operation and Maintenance Fund and the Rebate Fund, and (ii) amounts on deposit in certain funds and accounts, all as more particularly described herein. The Series 2006 Bonds are secured equally and ratably with Parity Bonds previously issued under a Resolution of the Authority and any Parity Bonds which may be issued in the future. The Series 2006 Bonds, together with other available funds, are being issued for the purpose of (i) financing or refinancing all or a portion of the costs of acquisition, construction and installation of certain capital improvements to Jacksonville International Airport, (ii) paying the cost of a municipal bond insurance policy for the Series 2006 Bonds, (iii) funding a portion of the Reserve Requirement and (iv) paying costs of issuing the Series 2006 Bonds. The Series 2006 Bonds will be subject to optional, extraordinary and mandatory sinking fund redemption prior to maturity as described herein. See “DESCRIPTION OF THE SERIES 2006 BONDS -- Redemption of Series 2006 Bonds.” Payment of the principal of and interest on the Series 2006 Bonds when due will be insured by a financial guaranty insurance policy to be issued by Ambac Assurance Corporation simultaneously with the delivery of the Series 2006 Bonds. See “BOND INSURANCE” herein. 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 MAKING AN INFORMED INVESTMENT DECISION. AMOUNTS, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND INITIAL CUSIPS ARE SET FORTH ON THE INSIDE COVER PAGE The Series 2006 Bonds are special and limited obligations of the Authority, and shall not be or constitute general obligations or indebtedness of the Authority, the City of Jacksonville, Florida (the “City”) or the State of Florida (the “State”) within the meaning of the Florida Constitution. Neither the faith and credit nor any taxing power of the Authority, the City or the State or any political subdivision thereof, is pledged to the payment of the principal of or the interest or premium, if any, on the Series 2006 Bonds and the owners thereof shall not have any right to compel any exercise of the taxing power of the Authority, the City or the State or any political subdivision thereof, to enforce such payment. The Series 2006 Bonds are not, and will not be, secured by any lien upon the property of the Authority, the City or the State or any political subdivision thereof, except the sources specified in the Bond Resolution. The Series 2006 Bonds are offered, subject to prior sale, when, as, and if issued and received by the Underwriters, and subject to the approving legal opinion of Foley & Lardner LLP, Jacksonville, Florida, as Bond Counsel. Certain legal matters will be passed upon for the Authority by the Office of General Counsel to the City of Jacksonville and the Authority, and for the Underwriters, Lawrence & Parker, P.A., Jacksonville, Florida. Public Financial Management, Inc., Orlando, Florida, is acting as financial advisor to the Authority. Foley & Lardner LLP is acting as disclosure counsel to the Authority. It is expected that the Series 2006 Bonds will be delivered in definitive form through the facilities of DTC in New York, New York on or about October 11, 2006. UBS Investment Bank RBC Capital Markets Citigroup Loop Capital Markets Dated: September 29, 2006 $129,190,000 JACKSONVILLE AVIATION AUTHORITY REVENUE BONDS, SERIES 2006 (AMT) AMOUNTS, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND INITIAL CUSIPS $55,365,000 Serial Bonds Maturity Interest Price or Initial (October 1) Amount Rate Yield CUSIP# 2007 $1,815,000 5.00% 3.540% 46935MAD6 2008 2,000,000 5.00 3.700 46935MAE4 2009 2,055,000 5.00 3.740 46935MAF1 2010 2,225,000 5.00 3.770 46935MAG9 2011 2,300,000 5.00 3.820 46935MAH7 2012 2,440,000 5.00 3.860 46935MAJ3 2013 2,620,000 5.00 3.900 46935MAK0 2014 2,735,000 5.00 3.960 46935MAL8 2015 2,910,000 5.00 4.000 46935MAM6 2016 3,070,000 5.00 4.050 46935MAN4 2017 4,045,000 4.00 4.190 46935MAP9 2018 8,810,000 5.00 106.545* 46935MAQ7 2019 3,320,000 5.00 106.210* 46935MAR5 2020 3,485,000 5.00 105.876* 46935MAS3 2021 3,660,000 5.00 105.627* 46935MAT1 2022 3,840,000 5.00 105.378* 46935MAU8 2023 4,035,000 5.00 105.129* 46935MAV6 Term Bonds $13,355,000 5.00% Term Bonds due October 1, 2026 Price 104.964* Initial CUSIP# 46935MAW4 $26,895,000 4.625% Term Bonds due October 1, 2031 Yield 4.635% Initial CUSIP# 46935MAX2 $12,560,000 4.40% Term Bonds due October 1, 2033 Yield 4.650% Initial CUSIP# 46935MAY0 $21,015,000 4.50% Term Bonds due October 1, 2036 Yield 4.670% Initial CUSIP# 46935MAZ7 * Priced to optional redemption date of October 1, 2016. JACKSONVILLE AVIATION AUTHORITY Jacksonville, Florida Members of the Governing Body Mary Burnett, Chairman Jack Demetree, Vice Chairman Charles Spencer Cyrus Jollivette, Treasurer Ronald M. Weaver, CLU James McCollum, Secretary John Falconetti Executive Director and Chief Executive Officer John D. Clark, III Chief Financial Officer Richard Rossi Counsel to the Jacksonville Aviation Authority Richard A. Mullaney, General Counsel to the City of Jacksonville Cindy A. Laquidara, Deputy General Counsel to the City of Jacksonville Bond Counsel Foley & Lardner LLP Jacksonville, Florida Financial Advisor Public Financial Management, Inc. Orlando, Florida Airport Consultant Ricondo & Associates, Inc. Cincinnati, Ohio REGARDING USE OF THIS OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING OF THE SERIES 2006 BONDS, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICES OF THE SERIES 2006 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information.