OCTORARA AREA SCHOOL DISTRICT Chester and Lancaster Counties, Pennsylvania in Which Such Offer, Solicitation General Obligation Bonds, Series of 2014
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PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 30, 2014 NEW ISSUE S&P Rating: Underlying: “A+” (Stable Outlook) BOOK-ENTRY ONLY Program: “A” Insured: See “Ratings” herein _________ Insured In the opinion of Bond Counsel, the interest on the Bonds (including any original issue discount) (a) is excludable from the gross income of the registered owners thereof for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, it should be noted that with respect to corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on such corporations. The opinion set forth in clause (a) above is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that or sale would be unlawful prior must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be) excluded from gross income for federal income tax purposes. Failure to comply with certain of such requirements could cause the interest on the Bonds to be so included in gross income retroactive to the date of issuance of the Bonds. The Issuer has covenanted to comply with all such requirements. Bond Counsel expresses no opinion regarding other federal . Under no circumstances shall this no circumstances Under . tax consequences arising with respect to the Bonds. Under the laws of the Commonwealth of Pennsylvania, as enacted and construed on the date hereof, the Bonds are exempt from personal property taxes in Pennsylvania and the interest on the Bonds is exempt from Pennsylvania personal income tax. For a more complete discussion of tax exemption, see “TAX MATTERS” and “TAX EXEMPTION” herein. $13,700,000* OCTORARA AREA SCHOOL DISTRICT Chester and Lancaster Counties, Pennsylvania in which such offer, solicitation General Obligation Bonds, Series of 2014 Dated: Date of Delivery Interest Payable: April 1 and October 1 Principal Due: As shown on inside cover First Interest Payment: April 1, 2015 Denomination: Integral multiples of $5,000 Form: Book-Entry Only Legal Investment for Fiduciaries in Pennsylvania: The Bonds (hereinafter defined) are a legal investment for fiduciaries in the Commonwealth of Pennsylvania under the Probate, Estate and Fiduciaries Code, Act of June 30, 1972, No. 164, P.L. 508 as amended and supplemented. Payable: The General Obligation Bonds, Series of 2014, in the aggregate amount of $13,700,000* (the “Bonds”) will be issued 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”). DTC will act as SUBJECT TO COMPLETION AND AMENDMENT securities depository for the Bonds. Purchases of the Bonds will be made only in book-entry form, and purchasers will not receive certificates representing these securities in any jurisdiction their interests in the Bonds. So long as DTC, or its nominee, Cede & Co., is the registered owner of the Bonds, payments of the principal and interest on the Bonds will be made by the Paying Agent directly to Cede & Co. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursements of such payments to Beneficial Owners of the Bonds is the responsibility of the DTC Participants and the Indirect Participants. See “BOOK- ENTRY ONLY SYSTEM” herein. Optional Redemption: The Bonds maturing on or after __________ are subject to redemption prior to maturity in whole or, from time to time, in part, in such order of maturity or portion of a maturity as Octorara Area School District,, Chester and Lancaster Counties,, Pennsylvania, (the “School District”) shall select and within a maturity by lot, at any time on or after ___________________-. Purpose: Proceeds of the Series of 2014 Bonds will be used to provide funds to: (1) advance refund the outstanding General Obligation Bonds, Series A of 2010, of the School District; (2) advance refund the outstanding General Obligation Bonds, Series B of 2010, of the School District; and (3) pay the costs of issuing the Bonds. r to buy nor shall there be any sale of Security: The Bonds are payable from tax and other general revenues of the School District. The School District has covenanted that it will provide in its budget in each year, and will appropriate from its general revenues in each such year, the amount of the debt service on the Bonds for such year and will duly and punctually pay or cause to be paid from funds in the sinking fund established in the Resolution or from any Bonds, and for such budgeting, appropriation and payment the School District irrevocably has pledged its full faith, credit and taxing power, which taxing power includes the power to levy ad valorem taxes on all taxable property with the School District, within limitations provided by law (see “SECURITY FOR THE BONDS” and “Act 1 of Special Session 2006 (“Taxpayer Relief Act”) herein). THE INFORMATION CONTAINED HEREIN ARE Bond Insurance: The scheduled payment of principal of and interest on the Bonds when due is guaranteed under a municipal bond insurance policy issued concurrently with the delivery of the Bonds by _______________________. [INSURANCE LOGO] The Bonds are offered for delivery when, as and if issued by the School District and received by the Underwriter, subject to the approving legal opinion of Kegel Kelin Almy & Lord LLP, Lancaster, Pennsylvania, Bond Counsel, to be furnished upon delivery of the Bonds. Certain legal matters will be passed upon by Kegel Kelin Almy & Lord LLP, Lancaster, Pennsylvania, Solicitor for the School District. It is expected that the Bonds will be available for delivery through the facilities offer to sell or a solicitation of an offe of DTC, on or about _________________. securities laws of such jurisdiction The date of this Official Statement is ____________-. *Preliminary, subject to change THIS PRELIMINARY OFFICIAL STATEMENT AND Preliminary Official Statement constitute an Official Statement Preliminary to registration or qualification under the $13,700,000* OCTORARA AREA SCHOOL DISTRICT Chester and Lancaster Counties, Pennsylvania General Obligation Bonds, Series of 2014 Dated: Date of Delivery Interest Payable: April 1 and October 1 Due: April 1, as shown below First Interest Payment: April 1, 2015 Denomination: Integral multiples of $5,000 Form: Book-Entry Only Maturity Schedule Principal Principal Year Amount Coupon Price Year Amount Coupon Price 2015 2023 2016 2024 2017 2025 2018 2026 2019 2027 2020 2028 2021 2029 2022 *Preliminary, subject to change No dealer, broker, salesman or other person has been authorized by the School District or the Underwriter to give any information or to make any representation, other than that given or made in this Official Statement, and if given or made, any such other information or representation may not be relied upon as having been authorized by the School District or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there 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. This Official Statement has been approved by the School District and, while the information set forth in this Official Statement has been furnished by the School District and other sources which are believed to be reliable, such information is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the Underwriter or, as to information obtained from other sources, by the School District. The information and expressions of opinion set forth in this Official Statement are subject to change without notice and neither the delivery of this Official Statement nor any sale made under this Official Statement shall, under any circumstances, create any implication that the affairs of the School District have remained unchanged since the date of this Official Statement. [Insurance Language] THE UNDERWRITER HAS PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN THIS OFFICIAL STATEMENT. THE UNDERWRITER HAS REVIEWED THE INFORMATION IN THIS OFFICIAL STATEMENT PURSUANT TO ITS RESPONSIBILITIES TO INVESTORS UNDER THE FEDERAL SECURITIES LAWS, BUT THE UNDERWRITER DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. TABLE OF CONTENTS Board of School Directors ............................................................................................................................................................... iii Summary Statement ......................................................................................................................................................................... iv Introduction ....................................................................................................................................................................................... 1 Purpose of the Issue .......................................................................................................................................................................... 1 Sources and Uses of Funds ............................................................................................................................................................... 1 Description