Audited Financial Statements
NEW ISSUE – BOOK ENTRY ONLY RATINGS: Standard & Poor’s: “AA” Moody’s: “Aa2” (See “RATINGS” herein) In the opinion of Bond Counsel, assuming compliance with certain covenants of the University, interest on the 2015 Bonds is excludable from gross income of the owners of the 2015 Bonds for federal income tax purposes under existing law, as currently enacted and construed. Interest on the 2015 Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax; however, interest on the 2015 Bonds is taken into account in determining adjusted current earnings for purposes of the corporate alternative minimum tax as more fully described under the caption “TAX MATTERS” herein. In the opinion of Bond Counsel, under the laws of the Commonwealth of Pennsylvania as presently enacted and construed, the 2015 Bonds are exempt from personal property taxes in Pennsylvania and the interest on the 2015 Bonds is exempt from Pennsylvania personal income and corporate net income tax. See “TAX MATTERS” herein. $182,165,000 THE PENNSYLVANIA STATE UNIVERSITY Bonds, Series A of 2015 - $65,210,000 Refunding Bonds, Series B of 2015 - $116,955,000 Dated: Date of Delivery Due: September 1, as shown on the inside cover page The Pennsylvania State University Bonds, Series A of 2015 (the “Series 2015A Bonds”) and The Pennsylvania State University Refunding Bonds, Series B of 2015 (the “Series 2015B Bonds” and, together with the Series 2015A Bonds, the “2015 Bonds”) are general unsecured obligations of The Pennsylvania State University (the “University”). The 2015 Bonds are issuable 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.
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