The Series 2019 Bonds Shall Constitute Limited
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PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 15, 2019 NEW ISSUE – BOOK-ENTRY ONLY Ratings: S&P: “A” (See “RATINGS” herein) In the opinion of Ballard Spahr LLP, Philadelphia, Pennsylvania, Bond Counsel, interest on the Series 2019 Bonds is excludable from gross income for purposes of federal income tax, assuming continuing compliance with the requirements of federal tax laws. Interest on the Series 2019 Bonds is not a specific preference item for purposes of individual federal alternative minimum tax. Bond Counsel is also of the opinion that, under the laws of the Commonwealth of Pennsylvania as presently enacted and construed, the Series 2019 Bonds are exempt from personal property taxes in Pennsylvania, and interest on the Series 2019 Bonds is exempt from Pennsylvania personal income tax and corporate net income tax. See “TAX MATTERS” herein. $31,000,000* MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY REVENUE BONDS, SERIES 2019 (THE HAVERFORD SCHOOL PROJECT) Dated: Date of Delivery Due: March 1, as shown on the inside front cover The Revenue Bonds, Series 2019 (The Haverford School Project) (the “Series 2019 Bonds”) will be issued by the Montgomery County Industrial Development Authority (the “Authority”) under a Trust Indenture dated as of August 1, 2019 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A., Philadelphia, Pennsylvania, as trustee, paying agent and bond registrar (in such capacities, the “Trustee”). The Series 2019 Bonds will be payable from and secured by certain funds held by the Trustee under the Indenture and payments to the Trustee, as assignee of the Authority, under the Loan Agreement (the “Loan Agreement”) described herein between the Authority and Haverford School (the “School”). The Series 2019 Bonds are payable solely from the funds held under the Indenture and from payments to be received by the Authority pursuant to the Loan Agreement. The School’s obligation under the Loan Agreement to make loan payments is a general obligation of the School. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2019 BONDS” herein. The Series 2019 Bonds are subject to redemption prior to maturity, as set forth in this Official Statement. See “THE SERIES 2019 BONDS – Redemption of the Series 2019 Bonds.” The Series 2019 Bonds will be issued 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, New York, New York (“DTC”). DTC will act as securities depository for the Series 2019 Bonds. Purchases of beneficial interests in the Series 2019 Bonds will be made in book-entry form, in denominations of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Series 2019 Bonds purchased. So long as Cede & Co. is the registered Owner, as nominee of DTC, references herein to the Bondholders, Owners or registered Owners shall mean Cede & Co., as aforesaid and shall not mean the Beneficial Owners of the Series 2019 Bonds. See “THE SERIES 2019 BONDS – Book-Entry-Only System” herein. THE SERIES 2019 BONDS SHALL CONSTITUTE LIMITED OBLIGATIONS OF THE AUTHORITY AND ARE PAYABLE SOLELY FROM THE TRUST ESTATE AND FROM PAYMENTS TO BE MADE BY THE SCHOOL UNDER THE LOAN AGREEMENT. NEITHER THE GENERAL CREDIT OF THE AUTHORITY NOR THE CREDIT OR THE TAXING POWER OF THE COUNTY OF MONTGOMERY OR OF THE COMMONWEALTH OF PENNSYLVANIA OR OF ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED FOR THE PAYMENT OF THE SERIES 2019 BONDS, NOR SHALL THE SERIES 2019 BONDS BE OR BE DEEMED A GENERAL OBLIGATION OF THE AUTHORITY OR AN OBLIGATION OF THE COUNTY OF MONTGOMERY OR THE COMMONWEALTH OF PENNSYLVANIA OR OF ANY POLITICAL SUBDIVISION THEREOF. THE AUTHORITY HAS NO TAXING POWER. This cover page contains information for reference only. It is a summary of this issue. Investors must read this entire Official Statement, including the Appendices hereto, to obtain information essential to making an informed investment decision. The Series 2019 Bonds are offered when, as and if issued by the Authority and received by the Underwriter, subject to the approving legal opinion of Ballard Spahr LLP, Philadelphia, Pennsylvania, Bond Counsel. Certain legal matters will be passed upon for the Authority by its counsel, Hamburg, Rubin, Mullin, Maxwell & Lupin, PC, Lansdale, Pennsylvania; for the School by its counsel, Ballard Spahr LLP, Philadelphia, Pennsylvania; and for the Underwriter, by its counsel, Saul Ewing Arnstein & Lehr LLP, Philadelphia, Pennsylvania. It is expected that the Series 2019 Bonds in definitive form will be available for delivery through the facilities of DTC on or about August [__], 2019. Dated: August [__], 2019 This is a Preliminary Official Statement and the information contained herein is subject to change, amendment and completion without notice. These securities may not be sold, nor may an offer to buy be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute anoffer to sell or the solicitation of anoffer nor to shall buy, there be any sale of these securities in any jurisdiction in which solicitation suchoffer, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. *Preliminary, subject to change. MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, YIELDS AND CUSIP NUMBERS $31,000,000 MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY REVENUE BONDS, SERIES 2019 (THE HAVERFORD SCHOOL PROJECT) Maturity Date Principal Interest (March 1) Amount Rate Yield CUSIP No.† $ ____% Term Bond due March 1, 20[ ], priced at _____% to yield ____%, CUSIP ___† Preliminary, subject to change. † “CUSIP” is a registered trademark of the American Bankers Association. CUSIP numbers are provided by CUSIP Global Services, which is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. The CUSIP numbers listed above are being provided solely for the convenience of holders of the Series 2019 Bonds only at the time of issuance of the Series 2019 Bonds. None of the Authority, the School or the Underwriter or their respective agents or counsel takes responsibility for the accuracy of such CUSIP numbers or at any time in the future. IN CONNECTION WITH THIS OFFERING THE UNDERWRITER MAY OVER-ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2019 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 SERIES 2019 BONDS IS MADE ONLY BY MEANS OF THIS ENTIRE OFFICIAL STATEMENT. ______________________________ The information set forth herein has been obtained from the Montgomery County Industrial Development Authority (the “Authority”) and The Haverford School (the “School”), and other sources which are believed to be reliable, but the information provided by sources other than the Authority is not guaranteed as to accuracy or completeness by the Authority. The information and expressions of opinions 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 any of the information set forth herein since the date hereof. The Authority has not prepared or assisted in the preparation of this Official Statement except for the statements under the captions “THE AUTHORITY” and “LITIGATION – The Authority.” The Authority has reviewed only the information contained herein under such captions and approved only such information for use within the Official Statement. The Underwriter has provided the following sentence for inclusion in the 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 law as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. No dealer, broker, salesperson or other person has been authorized by the Authority, the Underwriter or the School to give any information or to make any representations with respect to the Series 2019 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. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy any of the Series 2019 Bonds in any jurisdiction in which it is unlawful to make such an offer, solicitation, or sale. The Series 2019 Bonds are not, and will not be, registered under the Securities Act of 1933, as amended, or under any state securities laws, and the Indenture has not been and will not be qualified under the Trust Indenture Act of 1939, as amended, because of available exemptions therefrom. Neither the Securities and Exchange Commission nor any federal, state, municipal, or other governmental agency will pass upon the accuracy, completeness, or adequacy