(The Hill School Project) Series of 2015
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PRELIMINARY OFFICIAL STATEMENT DATED MARCH 27, 2015 NEW ISSUE - BOOK-ENTRY ONLY Ratings: Moody’s: “A1” (stable outlook) (See “RATING” herein) In the opinion of Drinker Biddle & Reath LLP, Bond Counsel, under existing laws as presently enacted and construed, interest on the Bonds (defined herein) is excluded from the gross income of the owners thereof for federal income tax purposes, and interest on the Bonds will not be a specific item of tax preference for purposes of the individual and corporate federal alternative minimum tax; however, interest on the Bonds will be included in “adjusted current earnings” in computing alternative minimum taxable income with respect to certain corporations. Such opinion of Bond Counsel is subject to continuous compliance by the Authority and the School with certain tax covenants contained with respect to the Bonds in the Indenture and the Loan Agreement. In the further opinion of Bond Counsel, under the laws of the Commonwealth of Pennsylvania, the Bonds are exempt from personal property taxes in Pennsylvania, and interest on the Bonds is exempt from Pennsylvania personal income tax and the Pennsylvania corporate net income tax. Interest on the Bonds is included in the gross income of the owners thereof for federal income tax purposes. For a more complete description of certain federal and state tax consequences of ownership of the Bonds, see “CERTAIN TAX MATTERS” herein. $20,585,000* Montgomery County Higher Education and Health Authority Revenue Refunding Bonds (The Hill School Project) Series of 2015 Dated: Date of Issuance Due: August 15, as shown on the inside cover page The $20,585,000* Revenue Refunding Bonds (The Hill School Project) Series of 2015 (the “Bonds”) are issuable only as fully registered bonds without coupons, and when issued, will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as a securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form. Purchasers will not receive certificates representing their beneficial ownership interests in the Bonds. Registered owners shall mean Cede & Co., as aforesaid, and shall not mean the actual purchasers of the Bonds. See “THE BONDS-Book-Entry Only System” herein. Principal or redemption price of and interest on the Bonds will be payable through the corporate trust office of Manufacturers and Traders Trust Company, as trustee (the “Trustee”). So long as DTC or its nominee, Cede & Co., is the registered owner of the Bonds, such payments will be made directly to DTC or its nominee. Disbursements of such payments to the DTC Participants (as defined herein) is the responsibility of DTC, and disbursements of such payments to the actual purchasers is the responsibility of the DTC Participants and Indirect Participants (as defined herein), as more fully described herein. Interest will be paid each February 15 and August 15, commencing August 15, 2015. The Bonds are subject to redemption prior to maturity as more fully described herein. See “THE BONDS-Redemption.” The Bonds are issued pursuant to the Pennsylvania Municipality Authorities Act, Pa. C.S. Ch. 56, as amended (the “Act”), a resolution of the Montgomery County Higher Education and Health Authority (the “Authority”) and a Trust Indenture, dated as of May 1, 2015 (the “Indenture”), between the Authority and the Trustee. The Bonds are limited obligations of the Authority and the principal or redemption price of and interest on the Bonds are payable by the Authority solely from payments to be made by The Hill School (the “School”) under a Loan Agreement, dated as of May 1, 2015 (the “Loan Agreement”), between the Authority and the School, and from other funds available under the Indenture. THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM THE TRUST ESTATE DESCRIBED IN, AND OTHER MONEYS AVAILABLE THEREFOR UNDER, THE INDENTURE. THE BONDS SHALL NOT BE IN ANY WAY A DEBT OR LIABILITY OF THE COUNTY OF MONTGOMERY, PENNSYLVANIA, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF, AND SHALL NOT DIRECTLY, INDIRECTLY OR CONTINGENTLY OBLIGATE, OR CREATE OR CONSTITUTE AN INDEBTEDNESS, LIABILITY OR OBLIGATION OF, THE COUNTY OF MONTGOMERY, PENNSYLVANIA, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF, MORAL OR OTHERWISE. NEITHER THE CREDIT NOR THE TAXING POWER OF THE COUNTY OF MONTGOMERY, PENNSYLVANIA, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OR REDEMPTION PRICE OF, OR INTEREST ON THE BONDS. THE AUTHORITY HAS NO TAXING POWER. 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 the making of an informed investment decision. The Bonds are offered when, as and if issued by the Authority and received by the Underwriter subject to the approving legal opinion of Drinker Biddle & Reath LLP, Philadelphia, Pennsylvania, Bond Counsel. Certain legal matters will be passed upon for the Authority by its counsel, Douglas B. Breidenbach, Jr., Esquire, Pottstown, Pennsylvania; for the School by its counsel, Drinker Biddle & Reath LLP, Philadelphia, Pennsylvania; and for the Underwriter by its counsel, Eckert Seamans Cherin & Mellott, LLC, Philadelphia, Pennsylvania. It is expected that the Bonds will be available for delivery in definitive form through DTC in New York, New York, on or about May __, 2015. This Official Statement is dated __________, 2015 This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. The Bonds may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered is Statement Official the time the to prior accepted be buy to offers may nor sold be not may Bonds The notice. without change other or amendment completion, to subject are herein contained information the and Statement Official Preliminary This unlawful be would sale or solicitation offer, such which in jurisdiction any in Bonds the of sale any be there shall nor buy, to offer an of solicitation the or sell to offer an constitute Statement Official Preliminary the shall circumstances no Under form. final in under the laws of any such jurisdiction. *Preliminary, subject to change. MATURITY SCHEDULE* $20,585,000 MONTGOMERY COUNTY HIGHER EDUCATION AND HEALTH AUTHORITY Revenue Refunding Bonds (The Hill School Project) Series of 2015 Maturing Date Principal Interest Price or (August 15) Amount Rate Yield CUSIP** 2015 $ % % 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $__________ _____% Term Bond due August 15, ____ (Priced at _____% to Yield _____%) CUSIP** __________ $__________ _____% Term Bond due August 15, ____ (Priced at _____% to Yield _____%) CUSIP** __________ $__________ _____% Term Bond due August 15, ____ (Priced at _____% to Yield _____%) CUSIP** __________ * Preliminary, subject to change. ** The CUSIP numbers listed above are provided by Standard & Poor's, CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc. The CUSIP numbers are being provided solely for the convenience of bondholders only at the time of issuance of the Bonds and neither the Authority nor the School makes any representation with respect to such numbers or undertakes any responsibility for their accuracy now or at any time in the future. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER-ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 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 ORDER AND PLACEMENT OF MATERIALS IN THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES, ARE NOT TO BE DEEMED TO BE A DETERMINATION OF RELEVANCE, MATERIALITY OR IMPORTANCE, AND THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES, MUST BE CONSIDERED IN ITS ENTIRETY. THE OFFERING OF THE BONDS IS MADE ONLY BY MEANS OF THIS ENTIRE OFFICIAL STATEMENT. THE BONDS MAY BE OFFERED AND SOLD TO CERTAIN DEALERS (INCLUDING DEALERS DEPOSITING THE BONDS INTO INVESTMENT ACCOUNTS) AND TO OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS WITHOUT PRIOR NOTICE TO THE PUBLIC, BUT WITH PRIOR NOTICE TO THE AUTHORITY AND THE SCHOOL. No dealer, broker, salesman or other person has been authorized by the Authority, the School or the Underwriter 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, 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. The information set forth herein has been obtained from the Authority, the School and other sources which are believed to be reliable, but, as to information from other sources, is not guaranteed as to accuracy or completeness by the Authority. 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 School or with respect to other matters set forth herein since the date hereof or the date as of which particular information is given, if earlier.