NORTH CAROLINA MEDICAL CARE COMMISSION Tax-Exempt Mandatorypaydown

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NORTH CAROLINA MEDICAL CARE COMMISSION Tax-Exempt Mandatorypaydown PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 2, 2018 NEW ISSUE NO RATING BOOK-ENTRY ONLY In the opinion of Bond Counsel, under existing law and subject to compliance with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), as described herein, interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax. In the opinion of Bond Counsel, under existing law, interest on the Bonds is exempt from State of North Carolina income taxes. See “TAX TREATMENT” herein. $38,035,000* NORTH CAROLINA MEDICAL CARE COMMISSION RETIREMENT FACILITIES FIRST MORTGAGE REVENUE BONDS (SALEMTOWNE PROJECT) SERIES 2018 consisting of $24,535,000 $5,000,000 $8,500,000 Series 2018A Tax-Exempt Mandatory Paydown Tax-Exempt Mandatory Paydown Securities (TEMPS-80TM) Securities (TEMPS-50TM) Series 2018B-1 Series 2018B-2 Dated: Date of Delivery Due: As shown on inside front cover The Bonds offered hereby (the “Bonds”) are being issued by the North Carolina Medical Care Commission (the “Commission”) pursuant to a Trust Agreement between the Commission and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Bond Trustee”), for the purpose of providing funds to Moravian Home, Incorporated, doing business as “Salemtowne” (the “Corporation”), to be used, together with other available funds, to (a) finance the 2018 Project (as defined in Appendix A hereto), (b) fund debt service reserve funds as discussed herein, (c) pay a portion of the interest accruing on the Bonds during construction of the 2018 Project and (d) pay certain fees and expenses incurred in connection with the sale and issuance of the Bonds. See “THE 2018 PROJECT” in Appendix A hereto and “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” herein. THE BONDS ARE LIMITED OBLIGATIONS OF THE COMMISSION, AND THE COMMISSION WILL NOT BE OBLIGATED TO PAY PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS EXCEPT FROM THE REVENUES AND OTHER FUNDS PLEDGED OR ASSIGNED THEREFOR UNDER THE TRUST AGREEMENT. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF NORTH CAROLINA OR OF ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED AS SECURITY FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE COMMISSION HAS NO TAXING POWER. The Bonds are issuable as fully registered bonds without coupons. Purchases of the Bonds will be made in book-entry form only, and individual purchasers will not receive physical delivery of Bond certificates. When issued, the Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). So long as Cede & Co. is the registered owner of the Bonds, principal and interest payments on the Bonds will be made to Cede & Co., which will in turn remit such payments to its participants for subsequent disbursement to the beneficial owners of the Bonds, all as described herein. Interest on the Bonds is payable on each April 1 and October 1, beginning April 1, 2019. Individual purchases of the Bonds will be made in the principal amount of $5,000 or any whole multiple thereof. So long as Cede & Co. is the registered owner of the Bonds, references herein to the Holders or registered owners of the Bonds shall mean Cede & Co. and shall not mean the beneficial owners of the Bonds. The Bonds are subject to optional, extraordinary optional and mandatory redemption prior to maturity as described herein. An investment in the Bonds involves a certain degree of risk related to, among other things, the nature of the Corporation’s business, the regulatory environment, and the provisions of the principal documents. A prospective Bondholder is advised to read “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” and “BONDHOLDERS’ RISKS” herein for a discussion of certain risk factors which should be considered in connection with an investment in the Bonds. This cover page contains certain information for ease of reference only. It does not constitute a summary of the Bonds or the security therefor. Potential investors must read this entire Official Statement, including the Appendices, to obtain information essential to the making of an informed investment decision. The Bonds are offered subject to prior sale, when, as and if issued by the Commission and accepted by the Underwriters, subject to the approval of Robinson, Bradshaw & Hinson, P.A., Charlotte, North Carolina, Bond Counsel. Certain legal matters will be passed upon for the Corporation by Womble Bond Dickinson (US) LLP, Winston-Salem, North Carolina, and for the Underwriters by Parker Poe Adams & Bernstein LLP, Raleigh, North Carolina. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about November 8, 2018. Davenport & Company LLC Official Statement Dated: October __, 2018 This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, buy, to Under no circumstances shall this Preliminary to sell or the solicitation of an offer This Preliminary Official Statement constitute an offer contained herein are subject to completion or amendment. Official Statement and the information any such jurisdiction. priorlaws of qualification or filing under the securities to registration, be unlawful solicitation or sale would sale of these securities jurisdictionnor shall there be any in any in which such offer, * Preliminary; subject to change. MATURITIES, AMOUNTS, INTEREST RATES, YIELDS and INITIAL CUSIPS* $24,535,000 SERIES 2018A BONDS CONSISTING OF $__________ SERIAL BONDS DUE PRINCIPAL INTEREST DUE PRINCIPAL INTEREST OctOber 1 AMOUNT RATE PRICE CUSIP© OctOber 1 AMOUNT RATE PRICE CUSIP© $________ _____% Term Bonds due October 1, 20__ Yield _____% CUSIP©: __________ $________ _____% Term Bonds due October 1, 20__ Yield _____% CUSIP©: __________ $5,000,000 Tax-Exempt Mandatory Paydown Securities (TEMPS-80TM) Series 2018B-1 $5,000,000 _____% Term Bonds due October 1, 20__ Yield _____% CUSIP©: __________ $8,500,000 Tax-Exempt Mandatory Paydown Securities (TEMPS-50TM) Series 2018B-2 $8,500,000 _____% Term Bonds due October 1, 20__ Yield _____% CUSIP©: __________ * Preliminary; subject to change. © CUSIP is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. Copyright © 2018 CUSIP Global Services. All rights reserved. CUSIP data herein is provided for convenience of reference only. None of the Commission, the Corporation, the Underwriters or their agents take responsibility for the accuracy of such data. IndianaIndiana Ave.Ave. Phillips Building Vogler Building and Masten Assisted Living SalemtowneSalemto Dr. Babcock Health Care SalemtowneSaleSalemtown Dr. Center Entrance Babcock Health 6 5 . Care Center Dr ock bc IndianaIndian Ave. Ba 502020 503003030 5010505010110 5040 Salemtowne Dr. 5015 5005 Salemtowne 502550 Rehabilitation Center The Woodlands 50550350350033 Bahnson Hall 2 Babcock Dr. Fitness 4 7 Center 50555 55 50655 South Dorcas 1 50855 Salemtowne5075 Dr. Dining Room 3 5060 5070 5080 8 Community North 5090 Center 105 Driscoll 115 125 Building Salemtowne Dr. Moravian Way Dr. 135 Hagen Ct. 3605 3601 110100 3600 1201220 36093 3604 140 Babcock House 130 36133 150 Wachovia Village Bechler Ln. 3608 5429 361736 5408 120 5400 5404 5425 110 145 3621 Covenant Ln. Wareham Ln. Community 3625 Bechler Ln. 5401 115 5405 5409 5421 105 125 135 Garden 5413 5500 3629 5504 5417 Gregor Ct. 102 3633 3637 5508 Babcock Lake B 101 r 5501 e 111 s Recreation l Areaeaea a 112 5513 u C r. r 5505 121 . C e 122 5509 u g a r 1321 131 P 14242 Salem Village Welcome Center 141 Bethabara & Main Entrance Place SPEED Moravian Way Dr. LIMIT 20 Bethabara Park Blvd. Community Center Babcock Health Care Building Aerial View – Babcock Health Care Building Woodlands Rendering REGARDING USE OF THIS OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING OF THE BONDS, B.C. ZIEGLER AND COMPANY AND DAVENPORT & COMPANY LLC (THE “UNDERWRITERS”) MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT LEVELS ABOVE THOSE THAT MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZATION, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. No dealer, broker, sales representative or other person has been authorized by the Commission, the Corporation or the Underwriters 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 upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall not be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information contained in this Official Statement has been furnished by the Corporation, the Commission, DTC and other sources that are believed to be reliable. The Underwriters have reviewed the information in this Official Statement in accordance with, and as a part of their respective 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. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the parties referred to above since the date hereof.
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