Senior Revenue Bonds, 2007 Series A
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NEW ISSUE - BOOK ENrJraY ONLY In the opinion of Bond Counsel, interest on the 2007A Bonds is not includable in gross income forpurposes of federal income taxation under existing statutes, regulations, rulings and court decisions, subject to the condition described in "TAXMATTERS" herein and interest on the 2007A Bonds is not treated as an item of tax preference under Section 57 of the Internal Revenue Code of 1986, as amended (the "Code'? for purposes of the individual and corporate alternative minimum taxes. However, under the Code, such interest may be subject to certain other taxes affecting corporate holders of the 2007A Bonds. Under existing law, the 2007A Bonds, interest on the 2007A Bonds and their transfer shall be exempt from taxation by the State of Delaware and its political subdivisions except for estate, inheritance or gift taxes imposed by the State of Delaware. For a more complete discussion, see "TAX MATTERS" herein. DELAWARE TRANSPORTATION AUTHORJTY $87,890,000 Transportation System Senior Revenue Bonds, 2007 Series A Dated: Date of Issuance Due: July 1, as shown below The Transportation System Senior Revenue Bonds, 2007 Series A (the "2007A Bonds") will be issued in book- entry only form. Beneficial owners of 2OO7A Bonds will not receive physical delivery of Bond certificates. Principal and interest payments on the 2007A Bonds are to be made to The Depository Trust Company or its nominee as record owner of the 2007A Bonds. Interest will be payable July 1, 2007 and thereafter semi-annually on each January 1 and July 1. The 2007A Bonds maturing on and after July 1, 2018 are subject to optional redemption prior to maturity, at the option of the Authority, in whole or in part at any time on or after July 1,2017, in any order of maturity selected by the Authority and within any mal$rity by lot, at a redemption price equal to 100%of the principal amount of the 2007A Bonds to be redeemed plus interest accrued and unpaid to the redemption date. MATURITY DATES, PRINCIPAT, AMOUNTS, INTEREST RATES AND PRICES* Principal Interest Due Principal Interest Amount ($) Rate (%) Price Yield(%) (Julvl) Amount($)Rate(%) Price Yield (%) 205,000 4.000 100.101 3.500 2015 105,000 4.000 101.750 3.750 400,000 4.000 100.529 3.550 2016** 4,975,000 5.000 108.931 3.840 8,005,000 4.000 100.842 3.600 2017** 5,220,000 4.500 105.704 3.820 8,335,000 4.000 101.293 3.570 2018** 5,455,000 5.000 108.930 3.930* 4,460,000 5.000 105.473 3.590 2019** 5,730,000 5.000 108.491 3.980* 4,680,000 5.000 106.556 3.610 2020** 22,130,000 4.500 103.307 4.100* 5,710,000 5.000 107.506 3.640 2021** 6,520,000 4.500 103.054 4.130* 5,960,000 4.000 102.072 3.670 * Yield to!call date (July 1,2017). ** Maturities insured by a financial guaranty insurance policy issued by MBIA Insurance Corporation. The payinent of the principal of and interest on the 2007A Bonds maturing from July 1, 2016 to July 1,2021, inclusive (the "Insured 2007A Bonds") when due will be insured by a financial guaranty insurance policy to be issued by MBIA Inspance Corporation simultaneously with the delivery of the 2007A Bonds. The 2007A Bonds are limited obligations of the Authority, payable solely from and secured by a pledge and assignment of Pledged Revenue. See "SECURITY FOR THE BONDS." The 2007A Bonds are secured on a parity with other Tbnsportation System Senior Revenue Bonds which have been issued by the Authority and remain outstanding. ' The Authority may issue additional bonds which are secured on a parity with all such Senior Bonds. THE 2007A Bonds DO NOT CONSTITUTE A DEBT OF THE STATE OF DELAWARE OR OF ANY POLITICAL SUBDMSION,AGENCY OR INSTRUMENTALITY THEREOF, OTHER THAN THE AUTHORITY, OR A PLEDGE OF THE GENERAL TAXING POWER OR THE FATTH AND CREDIT OF THE STATE OF DELAWARE OR ANY SUCH POLITICAL SUBDMSION, AGENCY OR INSTRUMENTALITY. The 2007A Bonds are offered when, as and if issued and received by the Underwriters, subject to the issuance of a legal opinion as to validity by Bond Counsel, Saul Ewing LLe Wilmington, Delaware and certain other conditions. A Deputy Attorney General of The State of Delaware will opine as to certain legal matters for the Authority. It is expected that the 2007A Bonds will be available for delivery through the facilities of The Depository Trust Company in New York, New York, on or about April 11,2007. Dated: March 29,2007 No dealer, broker, salesman or other person has been authorized by the Delaware Transportation Authority or the underwriters to give any information or to make any representations 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 an offer to buy, nor shall there be any sale of the 2007A Bonds by any person, in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information and expressions of opinion herein are subject to change without notice and neither the deliveiy 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 Authority or The State of Delaware since the date hereof. This Official Statement is distributed in connection with the sale of securities referred to herein and may not be reproduced or used in whole for any other purpose. In no instance may this Official Statement be reproduced or used in part. IN CONNECTION WITH THE OFFERING OF THE 2007A Bonds, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THIS OFFICIAL STATEMENT IS INTENDED TO REFLECT FACTS AND CIRCUMSTANCES ON THE DATE OF THIS OFFICIAL STATEMENT OR ON SUCH OTHER DATE OR AT SUCH OTHER TIME AS IDENTIFIED HEREIN. NO ASSURANCE CAN BE GWEN THAT SUCH ][NFOFMATION MAY NOT BE MISLEADING AT A LATER DATE. CONSEQUENTLY, RELIANCE ON THIS OFFICIAL STATEMENT AT TIMES SUBSEQUENT TO THE ISSUANCE OF THE 2007A Bonds SHOULD NOT BE MADE ON THE ASSUMPTION THAT ANY SUCH FACTS OR CIRCUMSTANCES ARE UNCHANGED. THE ANNUAL FINANCIAL REPORT OF THE AUTHORITY MAY BE OBTAINED BY WRITTEN REQUEST TO THE DEPARTMENT OF TRANSPORTATION, FINANCE, P.O. BOX 778, DOVER, DELAWARE 19903. TABLE OJ? CONTENTS JNTRODUCTION ........................................................................................................ 1 DELAWARE TRANSPORTATION AUTHORITY ................................................................. 1 General; Relation to the Department of Transportation...................................................................... 1 Powers and Responsibilities of the Authority ...............................................:........................... i ..... 2 Management of the Department and the Authority ...........................................................................2 Role of the State........................................................................................ .:......................... 4 .. THE TRANSPORTATION TRUST FUND ........................................................................... 5 General ...............................................................................................................................5 Initial Funding ......................................................................................................................5 Summary of Revenue Dedicated to the Trust Fund ..........................................................................6 Sources of Pledged Revenue Transportation Trust Fund - Fiscal 2006 ..................................................7 Uses of Funds in the Trust Fund ................................................................................................8 Sources and Uses of Funds for Fiscal Years 2003,2004,2005.and 2006 .................................................9 REFUNDING PROGRAM ............................................................................................ 11 ESTIMATED SOURCES AND USES OF FUNDS ..................................................... ; ........... 12 DESCRIPTION OF THE 2007A BONDS ...................................................................... i .... 13 Optional Redemption ........................................................:................................................... 13 Notice of Redemption ...........................................................................................................13 SECURITY FOR THE BONDS ....................................................................................... 13 Pledge and Assignment of Revenue and Funds ..............................................................................13 Non-Pledged Revenue ............................................................................................................16 Flow of Funds ....................................................................................................................16 Senior Lien for Senior Bonds ..................................................................................................17 Credit of the State Not Pledged; Certain Covenants of the State ..........................................................17 Additional Senior Bonds ........................................................................................................18