Charter Oak Unified School District
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NEW ISSUE- FULL BOOK-ENTRY INSURED RATING: S&P: "AA" UNDERLYING RATING: S&P: "A+" See "MISCELLANEOUS - Ratings" herein In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California ("Bond Counsel''), under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. In the farther opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax. See "TAX MATTERS" herein with respect to tax consequences relating to the Bonds. $10,000,000 CHARTER OAK UNIFIED SCHOOL DISTRICT (Los Angeles County, California) Election of 2012 General Obligation Bonds, Series B Dated: Date of Delivery Due: August 1, as shown on inside cover 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. Capitalized terms used but not otherwise defined on this cover page shall have the meanings assigned to such terms herein. The Charter Oak Unified School District (Los Angeles County, California) Election of 2012 General Obligation Bonds, Series B (the "Bonds") were authorized at an election of the registered voters of the Charter Oak Unified School District (the "District") held on June 5, 2012, at which the requisite 55% or more of the persons voting on the proposition voted to authorize the issuance and sale of not-to-exceed $47,000,000 principal amount of general obligation bonds. The Bonds are being issued to (i) finance the acquisition, construction, modernization and equipping of District sites and facilities, and (ii) pay the costs of issuing the Bonds. The Bonds are general obligations of the District payable solely from ad valorem property taxes. The Board of Supervisors of Los Angeles County is empowered and obligated to annually levy ad valorem taxes, without limitation as to rate or amount, upon all property subject to taxation by the District (except certain personal property which is taxable at limited rates), for the payment of principal of and interest on the Bonds when due. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (collectively referred to herein as "DIC"). Purchasers of interests in the Bonds (the "Beneficial Owners") will not receive physical certificates representing their interest in the Bonds. See "THE BONDS - Book-Entry Only System" herein. The Bonds will be issued as current interest bonds, such that interest therein will accrue from the date of delivery of the Bonds and be payable semiannually on February 1 and August 1 of each year, commencing on February 1, 2018. Payments of principal of and interest on the Bonds will be made by the designated paying agent, bond registrar and transfer agent (the "Paying Agent"), to DIC for subsequent disbursement to DIC Participants (as defined herein) who will remit such payments to the Beneficial Owners of the Bonds. US. Bank National Association has been appointed as agent of the Treasurer and Tax Collector of Los Angeles County to act as Paying Agent for the Bonds. See "THE BONDS -Book-Entry Only System" herein. The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Bonds by ASSURED GUARANTY MUNICIPAL CORP. See "THE BONDS - Bond Insurance" herein and "APPENDIX F - SPECIMEN MUNICIPAL BOND INSURANCE POLICY" attached hereto. The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity, as further described herein. MATURITY SCHEDULES (See inside front cover) The Bonds will be offered when, as and if issued, subject to the approval as to their legality by Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California, Bond Counsel and Disclosure Counsel to the District. Certain matters will be passed on for the Underwriter by Haw kins Delafield & Wood UP, Los Angeles, California. It is anticipated that the Bonds, in book-entry form, will be available for delivery through the facilities of Cede & Co., as nominee of The Depository Trust Company, in New York, New York, on or aboutJune 22, 2017. Dated: June 8, 2017 MATURITY SCHEDULES $10,COO,COO CHARTER OAK UNIFI ED SCHOOL DISTRICT (Las Angeles County, California) E lectioo of 2012 General Obligatioo Bonds, Series B BaseCUSI PI11 : 161285 $3,945,000 Serial Bands Maturity Principal Interest (August l) Amount Rate Yield CUSI P"' 2018 $110,000 2.000% 0.910% QQ7 2019 885,000 2.000 1.030 QRS 2020 780,000 3.000 1.120 QS3 2030 165,000 5.000 2.520(C) QV6 2031 195,000 5.000 2.590(C) QW4 2032 220,000 5.000 2.660(C) QX2 2033 255,000 5.000 2.730(C) QYO 2034 285,000 3.000 3.240 QZ7 2035 315,000 3.000 3.290 RAJ 2036 350,000 3.125 3.330 RB9 2037 385,000 3.125 3.370 RC7 $6,055,COO- 5.000!6 Current Interest Term Bonds due August 1, 2045 -Yield: 3.090!6 <cl; CUS I P111 : 161285RE 3 cci Yield to call at par on August 1, 2027. (ll CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services ("CGS"), managed by S&P Capital IQ 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 CGS database. CUSIP numbers have been assigned by an independent company not affiliated with the District, the Financial Advisor or the Undeiwriter and are included solely for the convenience of the registered mvners of the applicable Bonds. None of the District, the Financial Advisor or the Underwriter is responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the applicable Bonds or as included herein. The CUSIP number for a specific maturity is subject to being changed after the execution and delivery of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part 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. This Official Statement does not constitute an offering of any security other than the original offering of the Bonds of the District. No dealer, broker, salesperson or other person has been authorized by the District to give any information or to make any representations other than as contained in this Official Statement, and if given or made, such other information or representation not so authorized should not be relied upon as having been given or authorized by the District. The issuance and sale of the Bonds have not been registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections 3(a)2 and 3(a)l2, respectively, for the issuance and sale of such municipal securities. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. Certain information set forth herein has been obtained from sources outside of the District which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the District. The information and expressions of opinions herein are subject to change without notice and neither 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 District since the date hereof This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. When used in this Official Statement and in any continuing disclosure by the District in any press release and in any oral statement made with the approval of an authorized officer of the District or any other entity described or referenced in this Official Statement, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "forecast," "expect," "intend" and similar expressions identify "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material.