Ball State University Board of Trustees
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PRELIMINARY OFFICIAL STATEMENT DATED MAY 23, 2018 NEW ISSUE RATINGS BOOK-ENTRY-ONLY Moody’s: Aa3 S&P: AA- In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, judicial decisions and rulings, interest on the Series 2018 Bonds (as hereinafter defined) is excluded for federal income tax purposes from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and is not a specific preference item for purposes of the federal alternative minimum tax, although Bond Counsel observes that it is included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1, 2018. Such opinion is conditioned on continuing compliance with the Tax Covenants (as hereinafter defined). In the opinion of Ice Miller LLP, Indianapolis, Indiana, Bond Counsel, under existing laws, regulations, judicial decisions and rulings, interest on the Series 2018 Bonds is exempt from income taxation in the State of Indiana. See “TAX MATTERS,” “ORIGINAL ISSUE DISCOUNT,” “BOND PREMIUM” and APPENDIX E herein. $82,330,000* BALL STATE UNIVERSITY BOARD OF TRUSTEES Ball State University Housing and Dining System Revenue Bonds, Series 2018 Dated: Date of Delivery Due: July 1, as shown on the inside cover page The Ball State University Board of Trustees, Ball State University Housing and Dining System Revenue Bonds, Series 2018 (the “Series 2018 Bonds”), will be issued only as fully registered bonds and, when issued, will be registered in the name of CEDE & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). Purchases of beneficial interests in the Series 2018 Bonds will be made in book-entry only form. Purchasers of beneficial interests in the Series 2018 Bonds (the “Beneficial Owners”) will not receive physical delivery of certificates representing their interests in the Series 2018 Bonds. The Series 2018 Bonds will be issued in denominations of $5,000 or any integral multiple thereof. Interest on the Series 2018 Bonds is payable on January 1 and July 1 of each year, beginning January 1, 2019. Principal of and interest on the Series 2018 Bonds, together with any premium, will be paid directly to DTC by The Bank of New York Mellon Trust Company, N.A. (successor to Merchants Trust Company, N.A.), with a designated corporate trust office in Indianapolis, Indiana, as trustee and paying agent (the “Trustee”) under the Indenture (hereinafter defined), so long as DTC or its nominee is the registered owner of the Series 2018 Bonds. The final disbursements of such payments to the Beneficial Owners of the Series 2018 Bonds will be the responsibility of the DTC Participants and the Indirect Participants. See “DESCRIPTION OF SERIES 2018 BONDS - Book-Entry-Only System.” The Series 2018 Bonds are subject to redemption prior to maturity as described in this Official Statement. See “DESCRIPTION OF SERIES 2018 BONDS - Redemption - Optional Redemption - Mandatory Sinking Fund Redemption”. The Series 2018 Bonds are being issued pursuant to resolutions adopted by the Ball State University Board of Trustees (the “University”) and an Indenture of Trust, dated as of January 1, 2006 (the “Original Indenture”), as heretofore supplemented and as further supplemented by a Fourth Supplemental Indenture dated as of June 1, 2018 (the “Fourth Supplemental Indenture”) between the University and the Trustee (the Original Indenture, as heretofore supplemented, and the Fourth Supplemental Indenture, collectively, the “Indenture”). The proceeds of the Series 2018 Bonds will be used primarily to finance the acquisition, construction, expansion, renovation or equipping of certain Housing and Dining Facilities (as defined and described herein) on the campus of the University, as further described herein. The Series 2018 Bonds and any additional bonds issued on a parity therewith are limited obligations of the University, secured by a pledge of the Pledged Funds (as defined and described herein) and additionally payable from Available Funds (as defined and described herein). The Series 2018 Bonds are not a general obligation debt, liability or charge against any property or fund of the University or the State of Indiana, except to the extent of the Pledged Funds. See “SECURITY FOR THE BONDS.” See the inside cover page for maturities, principal amounts, interest rates, prices, yields and CUSIP numbers 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. The Series 2018 Bonds are being offered when, as and if issued by the University and received by the Underwriters, subject to prior sale, to withdrawal or modification of the offer without notice, and to the approval of legality by Ice Miller LLP, Indianapolis, Indiana, Bond Counsel. Certain legal matters will be passed upon for the University by DeFur Voran LLP, Muncie, Indiana, counsel to the University. It is expected that the Series 2018 Bonds in definitive form will be available for delivery to DTC in New York, New York, on or about June ___, 2018. Dated: June ___, 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, PRINCIPAL AMOUNTS INTEREST RATES, PRICES, YIELDS AND CUSIP1 NUMBERS $82,330,000* Ball State University Housing and Dining System Revenue Bonds, Series 2018 $72,690,000* Serial Bonds Date of Maturity Principal Amount* Interest Rate Price Yield CUSIP1 July 1, 2019 $2,490,000 July 1, 2020 2,620,000 July 1, 2021 2,750,000 July 1, 2022 2,895,000 July 1, 2023 3,040,000 July 1, 2024 3,200,000 July 1, 2025 3,360,000 July 1, 2026 3,535,000 July 1, 2027 3,715,000 July 1, 2028 3,905,000 July 1, 2029 4,105,000 July 1, 2030 4,315,000 July 1, 2031 4,540,000 July 1, 2034 5,115,000 July 1, 2035 5,380,000 July 1, 2036 5,655,000 July 1, 2037 5,915,000 July 1, 2038 6,155,000 $9,640,000* _____% Term Bonds due July 1, 2033* -- Price ____% -- Yield ____% -- CUSIP1 ________ 1 Copyright 2018, American Bankers Association. CUSIP data herein provided by Standard & Poor’s CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. CUSIP numbers are provided for convenience and reference only. Neither the University nor the Trustee is responsible for the selection or use of the CUSIP numbers, nor is any representation made as to their correctness on the Series 2018 Bonds or as indicated above. * Preliminary, subject to change No dealer, broker, salesman or any other person has been authorized by the University or the Underwriters to give any information or to make any representation other than those contained in this Official Statement, and if given or made, such information or representations must not be relied upon as having been authorized by the University or the Underwriters. Certain information in this Official Statement has been obtained from the University and other sources considered to be reliable, but is not guaranteed as to accuracy or completeness, and is not to be construed to be the representation of the Underwriters. This Official Statement should be considered in its entirety and no one factor considered more or less important than any other by reason of its position in this Official Statement. Any information or expressions of opinion in this Official Statement are subject to change without notice and neither the delivery of this Official Statement nor any sale hereunder shall under any circumstances create an implication that there has been no change as to the affairs of the University and other parties referred to herein since the date of this Official Statement or since any earlier date as of which information is stated to be given. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Series 2018 Bonds in any jurisdiction in which or to any person to whom it is unlawful to make such offer, solicitation or sale. In connection with this offering, the Underwriters may overallot or effect transactions which stabilize or maintain the market price of the Series 2018 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 Series 2018 Bonds have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, or registered in any state and will not be listed on any stock or other securities exchange. Neither the Securities and Exchange Commission nor any other federal, state or other governmental entity or agency will have passed upon the accuracy or adequacy of this Official Statement nor approved the Series 2018 Bonds for sale. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merit and risk involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document.