7590000 Borough of West Reading Berks County
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NEW ISSUE S&P Insured AA- (Stable Outlook) BOOK ENTRY S&P Underlying BBB+ (Positive Outlook) See “RATINGS” herein In the opinion of Bond Counsel, assuming continuing compliance by the Borough with certain covenants to comply with provisions of the Internal Revenue Code of 1986, as amended (the “Code”) and any applicable regulations thereunder, interest on the Bonds is not includable in gross income under Section 103(a) of the Code and interest on the Bonds is not an item of tax preference for purposes of the federal individual and corporate alternative minimum taxes, See “Tax Exemption” in this Official Statement. Other provisions of the Code may affect purchasers and holders of the Bonds. See “Federal Tax Laws” herein for a brief description of these provisions. Under the laws of the Commonwealth of Pennsylvania, the Bonds and interest on the Bonds shall be free from taxation for State and local purposes within the Commonwealth of Pennsylvania, but this exemption does not extend to gift, estate, succession or inheritance taxes or any other taxes not levied or assessed directly on the Bonds or the interest thereon. Under the laws of the Commonwealth of Pennsylvania, profits, gains or income derived from the sale, exchange or other disposition of the Bonds shall be subject to State and local taxation within the Commonwealth of Pennsylvania. The Borough has designated and determined under and for purposes of Section 265(b)(3) of the Code to qualify each of the Bonds as a “qualified tax-exempt obligation” as such phrase is defined in the Code. $7,590,000 BOROUGH OF WEST READING BERKS COUNTY, PENNSYLVANIA GENERAL OBLIGATION BONDS, SERIES OF 2012 Dated: Date of Delivery Interest Payable: April 1 and October 1 Principal Due: October 1, as shown on inside cover First interest Payment: October 1, 2012 The Borough of West Reading, Berks County, Pennsylvania (the “Borough”) will issue its General Obligation Bonds, Series of 2012 (the “Bonds”), in fully registered form, without coupons in denominations of $5,000 or any integral multiples thereof. Interest on the Bonds is payable on April 1 and October 1 of each year, commencing October 1, 2012. The Bonds will initially be registered in the name of Cede & Co., as nominee for The Depository Trust Company (“DTC”), New York, New York, an automated depository for securities and clearing house for securities transactions. Individual purchases of the Bonds will initially be made in book-entry form only in denominations of $5,000 or any integral multiples thereof under the book-entry only system maintained by DTC. Purchasers of the Bonds will not receive physical delivery of the Bonds. Transfer of the Bonds will be effected through a book-entry system as described herein. For so long as any purchaser is the beneficial owner of a Bond, that purchaser must maintain an account with a broker or a dealer who is, or acts through, a DTC Participant to receive payment of principal of and interest on the Bonds. See “BOOK-ENTRY ONLY SYSTEM” herein. So long as DTC or its nominee, Cede & Co., is the registered owner of the Bonds, payments of the principal of and interest on the Bonds when due for payment, will be paid directly to DTC or its nominee, Cede & Co., which will in turn remit such payments to DTC Participants for subsequent disbursement to the Beneficial Owners of the Bonds. If the use of a book-entry system for the Bonds is ever discontinued, Bonds will be issued in certificated form and the principal of the Bonds will be payable when due, upon surrender of such Bonds at the designated corporate trust office of Manufacturers and Traders Trust Company, Harrisburg, Pennsylvania, as paying agent (the “Paying Agent”) (or any successor paying agent at its designated offices), interest on such Bonds will be payable by check and mailed to the persons in whose name such Bonds are registered as of the Record Date with respect to the particular interest payment date, and the Bonds will be subject to registration of transfer, exchange and payment as described herein (see “THE BONDS” herein). The Bonds are subject to redemption prior to maturity as described herein. The Bonds are general obligations of the Borough, payable from its tax and other general revenues. The Borough has covenanted that it will include in its budget in each fiscal year, and will appropriate from its general revenues in each fiscal year, the amount of the debt service on the Bonds for such year and will duly and punctually pay or cause to be paid, the principal of every Bond and the interest thereon at the dates and places and in the manner stated in the Bonds, and for such budgeting, appropriation and payment the Borough irrevocably has pledged its full faith, credit and taxing power, which taxing power presently includes the power to levy ad valorem taxes on all taxable property within the Borough, presently unlimited as to rate or amount for such purpose. The proceeds of the 2012 Bonds will be used to: (1) currently refund the Borough’s outstanding General Obligation Bonds, Series of 2003; (2) provide funds for capital projects of the Borough; and (3) pay the costs and expenses related to the issuance of the 2012 Bonds. See “PLAN OF FINANCE” herein. 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 Assured Guaranty Municipal Corp. (“AGM”). MATURITIES, AMOUNTS, RATES AND INITIAL REOFFERING PRICES/YIELDS {As shown on inside cover} The Bonds are offered when, as and if issued by the Borough and received by Janney Montgomery Scott LLC (the “Underwriter”), subject to withdrawal or modification of the offer without notice, and subject to the approving legal opinion of Kozloff Stoudt, P.C., Wyomissing, Pennsylvania, Bond Counsel, to be furnished upon delivery of the Bonds. Certain legal matters will be passed upon for the Borough by Kozloff Stoudt, P.C., Wyomissing, Pennsylvania. Financial S&Lutions LLC, Reading, Pennsylvania, has acted as financial advisor to the Borough in connection with the issuance of the Bonds. It is expected that the Bonds will be available for delivery, through facilities of DTC, on or about July 26, 2012. July 11, 2012 $7,590,000 BOROUGH OF WEST READING BERKS COUNTY, PENNSYLVANIA GENERAL OBLIGATION BONDS, SERIES OF 2012 Due Principal (October 1) Amount Rate Yield CUSIP No.* 2012 $125,000 2.000% 0.700% 955550DQ8 2013 75,000 2.000% 1.000% 955550DR6 2014 80,000 2.000% 1.320% 955550DS4 2015 80,000 2.000% 1.540% 955550DT2 2016 80,000 2.000% 1.740% 955550DU9 2017 80,000 2.000% 2.000% 955550DV7 2018 80,000 2.125% 2.250% 955550DW5 2019 85,000 2.375% 2.470% 955550DX3 2020 475,000 2.500% 2.700% 955550DY1 2021 485,000 2.750% 2.890% 955550DZ8 2022 495,000 3.000% 3.030% 955550EA2 2023 500,000 3.000% 3.170% 955550EB0 2024 515,000 3.125% 3.320% 955550EC8 2025 530,000 3.250% 3.430% 955550ED6 2026 545,000 3.375% 3.520% 955550EE4 2027 565,000 3.500% 3.610% 955550EF1 2028 580,000 3.500% 3.690% 955550EG9 2029 600,000 3.625% 3.760% 955550EH7 2030 620,000 3.750% 3.780% 955550EJ3 2031 645,000 3.750% 3.850% 955550EK0 2032 350,000 3.750% 3.920% 955550EL8 * CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by Standard & Poor’s on behalf of the American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. CUSIP numbers are provided for convenience or reference only. Neither the Borough, the Financial Advisor nor the Underwriter take any responsibility for the accuracy of such CUSIP numbers. The CUSIP numbers 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. BOROUGH OF WEST READING Berks County, Pennsylvania COUNCIL Kevin M. Conrad President James J. Gallen, Jr. Vice President Amy Good Member Elizabeth Heckler Member Deborah Hutcheson Member Nathalie Kulesa Member Philip Wert Member MAYOR Shane J. Keller BOROUGH MANAGER Richard Sichler BOROUGH SOLICITOR Kozloff Stoudt Wyomissing, Pennsylvania BOND COUNSEL Kozloff Stoudt Wyomissing, Pennsylvania FINANCIAL ADVISOR Financial S&Lutions LLC Reading, Pennsylvania UNDERWRITER Janney Montgomery Scott LLC Philadelphia, Pennsylvania PAYING AGENT/BOND REGISTRAR/SINKING FUND DEPOSITARY Manufacturers and Traders Trust Company Harrisburg, Pennsylvania BOROUGH ADDRESS 500 Chestnut Street West Reading, Pennsylvania 19611 No dealer, broker, salesperson or other person has been authorized by the Borough of West Reading, Berks County, Pennsylvania (the “Borough”) or by Janney Montgomery Scott LLC (the “Underwriter”), to give any information or to make any representations with respect to the Bonds, other than the information 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 Borough or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall not be any sale of the Bonds by any person in any state 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 Borough, The Depository Trust Company and other sources that are believed to be reliable, and is in form deemed final by the Borough for the purpose of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, but the Underwriter does not guarantee the accuracy or completeness of such information, such information is not to be construed as a representation by the Underwriter, and except for the information concerning the Borough, such information is not to be construed as a representation by the Borough.