CHEROKEE SOLID WASTE DISPOSAL AUTHORITY (AL) PRELIMINARY OFFICIAL STATEMENT DATED MAY 2, 2017 ____% Tax-Exemptsolidwastedisposalrevenuebonds
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PRELIMINARY OFFICIAL STATEMENT DATED MAY 2, 2017 NEW ISSUE - BOOK ENTRY ONLY NOT RATED Assuming compliance with certain covenants, in the opinion of Waldrep, Stewart & Kendrick., LLC, Birmingham, Alabama, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is excludable from gross income for Federal income tax purposes upon the conditions and subject to the limitations set forth herein, but interest on the Bonds will be treated as a preference item in calculating the federal alternative minimum tax that may be imposed on corporations and individuals. Bond Counsel is further of the opinion that under existing law as presently interpreted, the Bonds and the interest thereon are exempt from taxation under the laws of the State of Alabama (See “TAX EXEMPTION” herein). $6,000,000* CHEROKEE SOLID WASTE DISPOSAL AUTHORITY (AL) ____% Tax-Exempt Solid Waste Disposal Revenue Bonds (CWI Alabama, LLC Project), Series 2017 Dated: Date of Delivery Price of all Bonds: ____ Due: May 1, 2037 The Bonds are limited obligations of Cherokee Solid Waste Disposal Authority (the “Authority”), and will be issued under and secured by a Mortgage and Trust Indenture dated as of May 1, 2017 (the “Indenture”), from the Authority to Wilmington Trust, National Association, as trustee (the “Trustee”). The Bonds will be payable solely from and secured by rental payments to be made pursuant to a Lease Agreement dated as of May 1, 2017 (the “Lease Agreement”) between the Authority and CWI Alabama, LLC, a Georgia limited liability company (the “Company”). There are restrictions on who may purchase the Bonds. The Bonds offered hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities act. The Bonds are being offered and sold hereby only to “Qualified Institutional Buyers” (as defined in Rule 144A under the Securities Act) or “Accredited Investors” (as defined in Rule 501(a) under the Securities Act). Transfers of the Bonds will be limited to only “Qualified Institutional Buyers” or “Accredited Investors”. See “RESTRICTIONS ON OWNERSHIP AND TRANSFER”. Interest on the Bonds will be payable semiannually on each May 1 and November 1, commencing November 1, 2017. The Bonds are issuable only as fully registered bonds without coupons in minimum denominations of $25,000 and integral multiples of $5,000 in excess thereof. The Bonds are subject to optional and mandatory redemption prior to maturity as described herein. THE BONDS ARE NOT A DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE STATE OF ALABAMA OR ANY POLITICAL SUBDIVISION THEREOF. NEITHER THE STATE OF ALABAMA NOR ANY POLITICAL SUBDIVISION OR AGENCY OF THE STATE OF ALABAMA OR THE AUTHORITY SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR THE INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THEREOF, EXCEPT FROM PAYMENTS MADE BY THE COMPANY THAT ARE PLEDGED BY THE AUTHORITY TO THE PAYMENT THEREOF. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF ALABAMA OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF OR THE AUTHORITY IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO. THE BONDS ARE SUBJECT TO CERTAIN RISKS. EACH PROSPECTIVE INVESTOR SHOULD CONSIDER HIS OR HER FINANCIAL CONDITION AND THE RISKS INVOLVED TO DETERMINE THE SUITABILITY OF INVESTING IN THE BONDS. THE AUTHORITY HAS NO TAXING POWER. SEE “BONDHOLDER’S RISKS” HEREIN. The Bonds are offered when, as and if issued by the Authority, subject to the approval of legality by Waldrep, Stewart & Kendrick, LLC, Birmingham, Alabama, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the Underwriter by Maynard, Cooper & Gale, P.C., Birmingham, Alabama, and for the Company by Schreeder, Wheeler & Flint, LLP, Atlanta, Georgia. It is anticipated that the Bonds in definitive form will be available for delivery through the facilities of DTC against payment therefor in New York, New York on or about May __, 2017. DUNCAN-WILLIAMS, INC. Dated: May __, 2017 THIS PRELIMINARY OFFICIAL STATEMENT has been “deemed final” within the meaning of and with the exception of certain within the meaning of and with permitted information by Rule 15c2‑12 of the Securities contained herein is subject to completion and amendment and Exchange Commission, the information to be omitted “deemed final” has been OFFICIAL STATEMENT THIS PRELIMINARY Under no circumstances form. in final buy be accepted prior to the time Official Statement is delivered to any offer The securitiesmay not be sold nor herein described a final Official Statement in accordance with Rule 15c2‑12. The issuer of the securities will deliver law. in accordance with applicable any such jurisdiction. priorlaws of or qualification under the securities to registration would be unlawful solicitation or sale sale of these securities jurisdiction nor shall there be any in any in which such offer, buy, to shall this Preliminary to sell or the solicitation of an offer Official Statement constitute an offer * Preliminary, subject to change. No dealer, salesman, or any other person has been authorized by the Authority, the Company, or the Underwriter to give information or to make any representations with respect to the Bonds, 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. Certain information contained herein has been obtained from the Company and other sources that are believed to be reliable, but the accuracy or completeness of such information is not guaranteed by, and such information is not to be construed to be a representation of, the Authority or the Underwriter. 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. The Authority neither has assumed nor will assume any responsibility as to the accuracy or completeness of the information in this Official Statement, other than that relating to “The Authority” and “Absence of Material Litigation.” UNDER NO CIRCUMSTANCES SHALL THIS OFFICIAL STATEMENT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES DESCRIBED HEREIN IN ANY JURISDICTION IN WHICH SAID OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACT. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF SECURITIES LAWS OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS PRELIMINARY OFFICIAL STATEMENT HAS BEEN DEEMED FINAL BY THE AUTHORITY AS OF ITS DATE WITHIN THE MEANING OF RULE 15c2-12 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, EXCEPT FOR THE OMISSIONS OF THE OFFERING PRICE(S), INTEREST RATE(S), SELLING COMPENSATION, AGGREGATE PRINCIPAL AMOUNT, PRINCIPAL AMOUNT PER MATURITY, DELIVERY DATE(S) AND OTHER TERMS OF THE BONDS DEPENDING ON SUCH MATTERS, ALL OF WHICH ARE PERMITTED OMISSIONS UNDER RULE 15c2-12. All quotations from and summaries and explanations of provisions of laws and documents herein do not purport to be complete, and reference is made to such laws and documents for full and complete statements of their provisions. The order and placement of material in this Official Statement, including its appendices, are not to be deemed a determination of relevance, materiality or importance, and all material in this Official Statement, including its appendices, must be considered in its entirety. The information in this Official Statement has been obtained from sources which are considered dependable and which are customarily relied upon in the preparation of similar official statements, but such information is not guaranteed as to accuracy or completeness. All estimates and assumptions contained herein are believed to be reliable, but no representation is made that such estimates or assumptions are correct or will be realized. No person, including any broker, dealer or salesman, has been authorized to give any information or to make any representation 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 the Authority or the Company. In connection with this offering, the Underwriter may over allot or effect transactions which stabilize or maintain the market price of the Bonds offered hereby at a level above that which might otherwise prevail in the open ii market, and such stabilizing, if commenced, may be discontinued at any time. The prices and other terms of the offering and sale of the Bonds may be changed from time to time by the Underwriter after the Bonds are released for sale, and the Bonds may be offered and sold at prices other than the initial offering prices, including sales to dealers, without prior notice. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.