The Trustees of Princeton University Taxable Bonds, 2016 Series A
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NEW ISSUE – BOOK-ENTRY ONLY $100,000,000 THE TRUSTEES OF PRINCETON UNIVERSITY Taxable Bonds, 2016 Series A Dated: Date of Delivery Interest Payable January 1 and July 1 The Trustees of Princeton University Taxable Bonds, 2016 Series A (the “Bonds”) will be issued pursuant to the terms of an Indenture of Trust, dated as of March 1, 2016 (the “Indenture”), by and between The Trustees of Princeton University (the “Institution”) and The Bank of New York Mellon, as trustee (the “Trustee”). The proceeds of the Bonds will be used by the Institution for general corporate purposes, including without limitation financing and refinancing capital expenditures, and to pay the costs of issuance of the Bonds. The Bonds will be issued in fully registered form in denominations of $1,000 and any integral multiple thereof and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases will be made in book-entry form only, in principal amounts of $1,000 and any integral multiple thereof. Purchasers of the Bonds will not receive physical certificates (except under certain circumstances described in the Indenture) representing their ownership interests in the Bonds purchased. Interest on the Bonds will be payable on January 1 and July 1 of each year, commencing on July 1, 2016. So long as the Bonds are held by DTC, the principal or Make-Whole Redemption Price (as defined herein) of and interest on the Bonds will be payable by wire transfer to DTC, which in turn is required to remit such principal or Make-Whole Redemption Price and interest to the DTC Participants for subsequent disbursement to the Beneficial Owners of the Bonds, as more fully described in “DTC BOOK-ENTRY ONLY SYSTEM AND GLOBAL CLEARANCE PROCEDURES” herein. The Bonds are subject to optional redemption prior to their stated maturity as described herein. See “THE BONDS – Optional Redemption” herein. Interest on, and gain, if any on the sale of the Bonds are not excludable from gross income for federal, state or local income tax purposes. See “TAX MATTERS” herein. The Bonds constitute unsecured general obligations of the Institution. The Institution has other unsecured general obligations outstanding. See APPENDIX A – “PRINCETON UNIVERSITY – Third Party Debt” and APPENDIX B – “REPORT OF THE TREASURER” attached hereto. Moreover, the Institution is not restricted by the Indenture or otherwise from incurring additional indebtedness. Such additional indebtedness, if issued, may be either secured or unsecured and may be entitled to payment prior to payment on the Bonds. See “SECURITY FOR THE BONDS” herein. Maturity Dates, Principal Amounts, Interest Rates, Prices and CUSIP Numbers $25,000,000 1.845% Bonds due July 1, 2021, Price: 100%, CUSIP Number 89837LAC9† $25,000,000 2.612% Bonds due July 1, 2026, Price: 100%, CUSIP Number 89837LAD7† $50,000,000 3.627% Bonds due July 1, 2046, Price: 100%, CUSIP Number 89837LAE5† This cover page contains certain information for quick reference only. It is not intended to be a summary of this issue. Investors must read the entire Offering Memorandum to obtain information essential to the making of an informed investment decision. The Bonds are offered by the Underwriter, when, as and if issued by the Institution and accepted by the Underwriter, subject to the approval of legality by Ballard Spahr LLP, Philadelphia, Pennsylvania, counsel to the Institution. In addition, certain other legal matters will be passed upon for the Institution by Ramona E. Romero, Esq., General Counsel to the Institution, and for the Underwriter by its counsel, McCarter & English, LLP, Newark, New Jersey. It is expected that the Bonds will be available for delivery to DTC in New York, New York on or about March 8, 2016. Goldman, Sachs & Co. March 1, 2016 † CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by Standard & Poor’s Financial Services LLC on behalf of the American Bankers Association. The CUSIP numbers are included solely for the convenience of Bondholders and the Institution is not responsible for the selection or the correctness of the CUSIP numbers printed herein. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors, including, but not limited to, the refunding or defeasance of such securities or the use of secondary market financial products. [THIS PAGE INTENTIONALLY LEFT BLANK] TABLE OF CONTENTS Page GENERAL INFORMATION ...................................................................................................................................... iii SUMMARY OF THE OFFERING ............................................................................................................................... v INTRODUCTION ......................................................................................................................................................... 1 Purpose of the Bonds and the Plan of Finance .......................................................................................................... 1 The Institution ........................................................................................................................................................... 1 The Bonds ................................................................................................................................................................. 1 Security for the Bonds .............................................................................................................................................. 1 Outstanding Indebtedness ......................................................................................................................................... 2 Redemption ............................................................................................................................................................... 2 Book-Entry Only System .......................................................................................................................................... 2 Continuing Disclosure .............................................................................................................................................. 2 Certain Information Related to this Offering Memorandum..................................................................................... 2 ESTIMATED SOURCES AND USES OF PROCEEDS .............................................................................................. 3 PLAN OF FINANCE .................................................................................................................................................... 3 THE BONDS ................................................................................................................................................................. 4 Description of the Bonds .......................................................................................................................................... 4 Optional Redemption ................................................................................................................................................ 4 Partial Redemption of Bonds .................................................................................................................................... 5 Notice of Redemption ............................................................................................................................................... 5 Effect of Redemption ................................................................................................................................................ 6 Selection of Bonds for Redemption Within a Maturity ............................................................................................ 6 DTC BOOK-ENTRY ONLY SYSTEM AND GLOBAL CLEARANCE PROCEDURES ......................................... 7 General ...................................................................................................................................................................... 7 Certificated Bonds .................................................................................................................................................... 9 Euroclear and Clearstream Banking ....................................................................................................................... 10 Clearing and Settlement Procedures ....................................................................................................................... 10 Initial Settlement ..................................................................................................................................................... 11 Secondary Market Trading ..................................................................................................................................... 11 SECURITY FOR THE BONDS .................................................................................................................................. 11 General .................................................................................................................................................................... 11 Indenture Fund .......................................................................................................................................................