Airport Revenue Bonds
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NEW ISSUE — BOOK-ENTRY-ONLY RATINGS: Moody’s: Aa3 מS&P: AA OFFICIAL STATEMENT DATED OCTOBER 25, 2018 In the opinion of Greenberg Traurig, LLP, Bond Counsel, assuming compliance with certain tax covenants, interest on the Series 2018 Bonds is excluded from gross income for federal income tax purposes under existing statutes, regulations, rulings and court decisions, except for interest on any Series 2018 Bonds for any period during which such Series 2018 Bond is owned by a person who is a substantial user of the Property (as defined herein) or any person considered to be related to such person (within the meaning of Section 147(a) of the Internal Revenue Code of 1986, as amended). Interest on the Series 2018 Bonds will be treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals. Bond Counsel is further of the opinion that assuming interest is so excludable for federal income tax purposes, the interest on the Series 2018 Bonds is exempt from income taxation under the laws of the State of Arizona. See “TAX EXEMPTION” herein for a description of the federal alternative minimum tax, including the federal alternative minimum tax on corporations for tax years beginning before January 1, 2018 and certain other federal tax consequences of ownership of the Series 2018 Bonds. CITY OF PHOENIX CIVIC IMPROVEMENT CORPORATION $226,180,000 Senior Lien Airport Revenue Bonds, Series 2018 (AMT) Dated: Date of Delivery Due: July 1, as shown on inside front cover The principal of and premium, if any, and interest on the Senior Lien Airport Revenue Bonds, Series 2018 (the “Series 2018 Bonds”) will be paid by U.S. Bank National Association, as trustee (the “Trustee,” also referred to herein as the “Registrar,” and the “Paying Agent”). The Series 2018 Bonds will be issued as fully registered bonds in amounts of $5,000 each or any integral multiple thereof of principal due on specified maturity dates. The Series 2018 Bonds, when issued, will be registered in the name of The Depository Trust Company (“DTC”) or its nominee and will be available to purchasers initially only through the book-entry-only system maintained by DTC. So long as the book-entry-only system is maintained, no physical delivery of the Series 2018 Bonds will be made to the ultimate purchasers thereof and all payments of principal of and premium, if any, and interest on the Series 2018 Bonds will be made to such purchasers through DTC. Interest on the Series 2018 Bonds is payable semiannually on January 1 and July 1 of each year, commencing January 1, 2019, by the Trustee. The Series 2018 Bonds are being issued pursuant to a Bond Indenture, dated as of November 1, 2018, between the City of Phoenix Civic Improvement Corporation (the “Corporation”) and the Trustee. The Series 2018 Bonds are subject to redemption prior to maturity as described herein. The Series 2018 Bonds are special revenue obligations of the Corporation and are payable solely from payments required to be paid by the City of Phoenix, Arizona (the “City”), to the Corporation pursuant to the City Purchase Agreement dated as of November 1, 2018 (the “City Purchase Agreement”) between the City and the Corporation. The obligations of the City to make payments under the City Purchase Agreement are absolute and unconditional, but do not constitute a pledge of the full faith and credit or the ad valorem taxing power of the City. Except to the extent the City appropriates other lawfully available funds for such payments, the City’s payments under the City Purchase Agreement are payable solely from Net Airport Revenues (as defined herein) to be derived from operation of the City’s Airport (as defined herein). The pledge of Net Airport Revenues to amounts due under the City Purchase Agreement is on a parity with amounts owed with respect to outstanding Senior Lien Obligations (as defined herein) and Senior Lien Obligations which may be issued in the future. See “SECURITY AND SOURCE OF PAYMENT” herein. This cover page contains only a brief description of the Series 2018 Bonds and the security therefor, and is designed for quick reference only. This cover page is not a summary of all material information with respect to the Series 2018 Bonds or of investment risks involved with the purchase of the Series 2018 Bonds, and investors are advised to read this entire Official Statement, giving particular attention to the matters discussed under “CERTAIN BONDHOLDERS’ RISKS,” in order to obtain information essential to making an informed investment decision. The Series 2018 Bonds are offered when, as and if issued and received by the Underwriters, and subject to the legal opinion of Greenberg Traurig, LLP, Bond Counsel, as to validity and tax exemption. Certain legal matters will be passed upon for the Underwriters by Squire Patton Boggs (US) LLP, counsel to the Underwriters. It is expected that the Series 2018 Bonds will be available for delivery in book-entry-only form through the facilities of DTC on or about November 28, 2018. Barclays Citigroup FTN Financial Capital Markets Jefferies MATURITY SCHEDULE CITY OF PHOENIX CIVIC IMPROVEMENT CORPORATION $226,180,000 Senior Lien Airport Revenue Bonds, Series 2018 (AMT) Maturity Principal Interest July 1 Amount Rate Yield 2019 $1,950,000 5.00% 2.04% 2020 3,400,000 5.00 2.21 2021 3,575,000 5.00 2.30 2022 3,750,000 5.00 2.41 2023 3,935,000 5.00 2.54 2024 4,140,000 5.00 2.66 2025 4,345,000 5.00 2.80 2026 4,560,000 5.00 2.95 2027 4,790,000 5.00 3.07 2028 5,025,000 5.00 3.16 2029 5,275,000 5.00 3.26* 2030 5,545,000 5.00 3.33* 2031 5,820,000 5.00 3.39* 2032 6,110,000 5.00 3.42* 2033 6,420,000 5.00 3.48* 2034 6,735,000 5.00 3.53* 2035 7,075,000 5.00 3.60* 2036 7,430,000 5.00 3.67* 2037 7,800,000 5.00 3.71* 2038 8,185,000 5.00 3.74* $47,510,000 5.00% Term Bond due July 1, 2043, Yield 3.85%* $52,805,000 5.00% Term Bond due July 1, 2048, Yield 3.91%* $20,000,000 4.00% Term Bond due July 1, 2048, Yield 4.20% * Yield to July 1, 2028, the first optional redemption date. CITY OF PHOENIX, ARIZONA CITY OF PHOENIX CIVIC IMPROVEMENT CORPORATION Michael R. Davis President and Director Bruce Covill James H. Lundy Vice President and Director Secretary-Treasurer and Director Barbara Barone Rosellen Papp Marian Yim Director Director Director CITY OF PHOENIX, ARIZONA CITY COUNCIL (a) Thelda Williams, Mayor Pro Tempore Thelda Williams, Member Jim Waring, Vice Mayor and Member District 1 District 2 Debra Stark, Member Laura Pastor, Member District 3 District 4 Vania Guevara, Interim Member Sal DiCiccio, Member District 5 District 6 Michael Nowakowski, Member Felicita Mendoza, Interim Member District 7 District 8 ADMINISTRATIVE OFFICIALS Ed Zuercher City Manager Milton Dohoney, Jr. Assistant City Manager Deanna Jonovich Deputy City Manager James E. Bennett Denise M. Olson Director of Aviation Services Chief Financial Officer Brad Holm Denise Archibald City Attorney City Clerk SPECIAL SERVICES GREENBERG TRAURIG, LLP FRASCA & ASSOCIATES, LLC Phoenix, Arizona New York, New York Bond Counsel Financial Advisor LEIGHFISHER INC. U.S. BANK NATIONAL ASSOCIATION Cincinnati, Ohio Phoenix, Arizona Airport Consultant Trustee, Bond Registrar, Paying Agent (a) On May 29, 2018, Greg Stanton resigned as Mayor to run for a U.S. Congressional seat. On June 11, 2018, Councilmember Thelda Williams was appointed Mayor Pro Tempore by the City Council to serve until a new Mayor is elected by the public. The election for Mayor will be held on November 6, 2018, with a possible run-off election to be held on March 12, 2019. Ms. Williams will continue to serve as the Councilmember from her district while serving as Mayor Pro Tempore. Councilmembers Daniel Valenzuela and Kate Gallego resigned their council seats on July 18, 2018 and August 7, 2018, respectively, to run for the vacant mayoral position. The City Council appointed Vania Guevara to represent District 5 and Felicita Mendoza to represent District 8 as Interim Councilmembers until new Councilmembers are elected by the public. The election for the two council seats will be held on March 12, 2019, with a possible run-off election to be held on June 5, 2019. This Official Statement does not constitute an offering of any security other than the original offering of the Series 2018 Bonds of the Corporation identified on the cover page hereof. No person has been authorized by the Corporation, the City, the Financial Advisor or the Underwriters to give any information or to make any representation 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 Corporation, the City, the Financial Advisor or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy, and there shall not be any sale of the Series 2018 Bonds by any person in any jurisdiction in which it is unlawful to make such offer, solicitation or sale. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the Corporation or the City since the date hereof.