City and County of Honolulu, Hawaii General Obligation Bonds, Series 2011A and 2011B (Final Opinion)

NEW ISSUE RATINGS: FULL BOOK-ENTRY Fitch: AA+ Moody’s: Aa1 (See “Bond Ratings” herein) In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the City and County, based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, and the Bonds and the income therefrom are exempt from all taxation by the State of Hawaii or any county or other political subdivision thereof, except inheritance, transfer, estate and certain franchise taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual and corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating federal corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds. See “TAX MATTERS” in this Official Statement. $304,345,000 CITY AND COUNTY OF HONOLULU General Obligation Bonds Series 2011A and 2011B Dated: Date of Delivery Due: August 1, as shown on inside cover The City and County of Honolulu General Obligation Bonds, Series 2011A and Series 2011B (the “Series 2011A Bonds” and “Series 2011B Bonds,” respectively, and together, the “Bonds”), are being issued by the City and County of Honolulu (the “City and County”) in fully registered form and when issued will be registered initially in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), New York, New York. So long as DTC or its nominee is the registered owner of the Bonds, purchases of the Bonds will be made in book-entry form only, through brokers and dealers who are, or who act through, DTC participants; beneficial owners of the Bonds will not receive physical delivery of certificates; payment of the principal of, and premium, if any, and interest on, the Bonds will be made directly to DTC or its nominee; and disbursement of such payments to DTC participants will be the responsibility of DTC and disbursement of such payments to the beneficial owners will be the responsibility of DTC participants. Purchases of the Bonds may initially be made in the denomination of $5,000 or any integral multiple thereof. The Bonds will be dated as of the date of delivery thereof and will bear interest at the rates shown on the inside cover, payable on February 1 and August 1 of each year, commencing August 1, 2012 for the Series 2011A Bonds and February 1, 2012 for the Series 2011B Bonds. The Bonds are subject to redemption prior to the stated maturity thereof as described herein. The Bonds are being issued for the purpose of funding certain capital improvement projects of the City and County and to refund certain outstanding general obligation bonds of the City and County. The Bonds are the absolute and unconditional general obligations of the City and County. The principal and interest payments on the Bonds are a first charge on the general fund of the City and County, and the full faith and credit of the City and County are pledged to the punctual payment of such principal and interest. For the payment of the principal of and interest on the Bonds, the City and County has the power and is obligated to levy ad valorem taxes, without limitation as to rate or amount, on all real property subject to taxation by the City and County. The Bonds are offered when, as and if issued and received by the Underwriters, and are subject to the approval of legality by Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the City and County. Certain legal matters will be passed upon for the Underwriters by their counsel, McCorriston Miller Mukai MacKinnon LLP, Honolulu, Hawaii. It is expected that the Bonds in definitive form will be available for delivery to DTC, in New York, New York, on or about August 4, 2011. BofA Merrill Lynch Piper Jaffray & Co. July 13, 2011 $304,345,000 CITY AND COUNTY OF HONOLULU General Obligation Bonds $141,235,000 Series 2011A Year Principal Interest CUSIP Year Principal Interest CUSIP (August 1) Amount Rate Yield (438670) * (August 1) Amount Rate Yield (438670)* 2016 $4,150,000 4.00% 1.46% XY2 2027 $6,735,000 5.00% 3.80%† YK1 2017 4,315,000 4.00 1.88 XZ9 2028 7,085,000 5.00 3.90† YL9 2018 4,495,000 4.00 2.23 YA3 2029 7,410,000 4.00 4.20 YM7 2019 4,675,000 4.00 2.52 YB1 2030 7,760,000 5.25 3.99† YN5 2020 4,865,000 4.00 2.78 YC9 2031 8,180,000 5.25 4.09† YP0 2021 5,065,000 4.00 2.98 YD7 2032 8,575,000 4.25 4.45 YQ8 2022 5,270,000 4.00 3.19† YE5 2033 8,995,000 5.25 4.27† YR6 2023 5,515,000 5.00 3.35† YF2 2034 9,480,000 5.25 4.34† YS4 2024 5,800,000 5.00 3.48† YG0 2035 9,950,000 4.50 4.65 YT2 2025 6,095,000 5.00 3.61† YH8 2036 10,410,000 4.50 4.68 YU9 2026 6,410,000 5.00 3.72† YJ4 $163,110,000 Series 2011B Bonds Year Principal Interest CUSIP Year Principal Interest CUSIP (August 1) Amount Rate Yield (438670) * (August 1) Amount Rate Yield (438670) * 2016 $ 3,500,000 2.00% 1.46% YV7 2021 $1,335,000 3.25% 2.98% ZA2 2016 6,820,000 5.00 1.46 ZG9 2021 11,710,000 5.00 2.98 ZM6 2017 2,040,000 2.50 1.88 YW5 2022 13,705,000 5.00 3.19† ZB0 2017 8,730,000 5.00 1.88 ZH7 2023 14,405,000 5.00 3.35† ZC8 2018 1,565,000 3.00 2.23 YX3 2024 1,010,000 3.50 3.64 ZD6 2018 9,715,000 5.00 2.23 ZJ3 2024 14,125,000 5.00 3.48† ZP9 2019 420,000 3.00 2.52 YY1 2025 15,905,000 5.00 3.61† ZE4 2019 11,420,000 5.00 2.52 ZK0 2026 16,720,000 5.00 3.72† ZF1 2020 1,165,000 3.25 2.78 YZ8 2027 5,000,000 4.00 4.02 ZN4 2020 11,265,000 5.00 2.78 ZL8 2027 12,555,000 5.00 3.80† ZQ7 * Copyright, American Bankers Association. CUSIP data provided by Standard & Poor’s CUSIP Service Bureau, a division of The McGraw- Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Service. CUSIP numbers are provided for convenience of reference only. Neither the City and County nor the Underwriters take any responsibility for the accuracy of such numbers. † Priced to call at par on August 1, 2021. City and County of Honolulu State of Hawaii (Incorporated 1907) MAYOR Peter B. Carlisle CITY COUNCIL Ernest Y. Martin Chair and Presiding Officer Ikaika Anderson Vice Chair Romy M. Cachola Floor Leader Tom Berg Stanley Chang Tulsi Gabbard Nestor R. Garcia Breene Harimoto Ann H. Kobayashi DIRECTOR OF BUDGET AND FISCAL SERVICES Michael R. Hansen ACTING CORPORATION COUNSEL Robert Carson Godbey BOND COUNSEL Orrick, Herrington & Sutcliffe LLP San Francisco, California The information contained in this Official Statement has been obtained from the City and County of Honolulu and other sources deemed reliable. No guaranty is made, however, as to the accuracy or completeness of such information. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. This Official Statement, which includes the cover page and appendices, does not constitute an offer to sell the Bonds in any state to any person to whom it is unlawful to make such offer in such state. No dealer, salesman or other person has been authorized to give any information or to make any representations, other than those contained in this Official Statement, in connection with the offering of the Bonds, and if given or made, such information or representations must not be relied upon. The information contained herein is subject to change without notice and neither the delivery of this Official Statement nor any sale hereunder at any time implies that the information contained herein is correct as of any time subsequent to its date. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. IN CONNECTION WITH THIS OFFERING THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF CONTENTS Page Page INTRODUCTION .......................................................

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