CVG 2019 CFC OS.Pdf
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NEW ISSUE – Book-Entry-Only Ratings: See “RATINGS” herein. In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law, interest on the Series 2019 CFC Bonds is exempt from income taxation by the Commonwealth of Kentucky and all political subdivisions thereof, and the Series 2019 CFC Bonds are exempt from ad valorem taxation by the Commonwealth of Kentucky and all political subdivisions thereof. INTEREST ON THE SERIES 2019 CFC BONDS IS NOT EXCLUDED FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES. For a more complete discussion of the tax aspects, see “TAX TREATMENT” herein. $103,130,000 KENTON COUNTY (KENTUCKY) AIRPORT BOARD Cincinnati/Northern Kentucky International Airport Senior Customer Facility Charge Taxable Revenue Bonds (Consolidated Ground Transportation Facility) Series 2019 Dated: Date of Delivery Due: January 1 as shown on the inside cover The Series 2019 CFC Bonds. The Kenton County Airport Board’s Cincinnati/Northern Kentucky International Airport Senior Customer Facility Charge Taxable Revenue Bonds (Consolidated Ground Transportation Facility) Series 2019 (the “Series 2019 CFC Bonds”) will be issued as fully registered bonds in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company (“DTC”), New York, New York. Individual purchases and sales of the Series 2019 CFC Bonds may be made in book-entry-form (without certificates) only in denominations of $5,000 and integral multiplies thereof. Principal of, premium, if any, and interest on the Series 2019 CFC Bonds will be paid by U.S. Bank National Association, a national banking association, as bond registrar and paying agent (the “Paying Agent”) for the Series 2019 CFC Bonds. So long as the Series 2019 CFC Bonds are held by DTC, the principal and redemption price of and interest on the Series 2019 CFC Bonds will be payable by wire transfer to DTC, which in turn will be required to remit such principal, redemption price and interest to the DTC participants for subsequent disbursement to the beneficial owners of the Series 2019 CFC Bonds, as more fully described herein. See “APPENDIX G—BOOK-ENTRY-ONLY SYSTEM.” Maturity and Interest Payment Dates. The Series 2019 CFC Bonds shall mature on the dates, in the principal amounts, bear interest at the rates per annum and have the prices, yields, and CUSIP numbers as shown on the inside cover page. Interest on the Series 2019 CFC Bonds will be payable on January 1 and July 1, commencing July 1, 2019. Redemption. The Series 2019 CFC Bonds are subject to optional, mandatory sinking fund and extraordinary mandatory redemption prior to maturity, as more fully described herein. See “THE SERIES 2019 CFC BONDS—Redemption Provisions.” Purpose. The Series 2019 CFC Bonds are being issued to (a) finance a portion of the costs and expenses of financing, designing and constructing the Series 2019 CFC Project (as defined herein) at Cincinnati/Northern Kentucky International Airport (the “Airport”), (b) fund all of the CFC Senior Debt Service Reserve Fund Requirement (as defined herein); (c) fund all of the CFC Coverage Fund Requirement (as defined herein); and (d) pay the costs of issuance of the Series 2019 CFC Bonds. See “THE 2019 PROJECT”, “PLAN OF FINANCE” and “ESTIMATED 2019 PROJECT SOURCES AND USES OF FUNDS” herein. Security/Limited Obligations. The Series 2019 CFC Bonds are special limited obligations of the Kenton County Airport Board (the “Board”), payable solely from and secured by a pledge of the Trust Estate (as defined herein), which includes, among other things, (a) Customer Facility Charges (as defined herein) collected by the rental car companies operating both on-Airport and off-Airport and any Annual Requirement Deficiency (as defined herein) paid by the rental car companies operating under the RAC Agreements (as defined herein), each remitted to U.S. Bank National Association, as trustee (the “Trustee”) under the Master CFC Trust Indenture, dated as of March 1, 2019, between the Board and the Trustee (the “Indenture”), as assignee of the Board, (b) Pledged Funds (as defined herein), and (c) Pledged Revenues (as defined herein). No revenues of the Board, other than the Customer Facility Charges and the Annual Requirement Deficiency are pledged to the payment of the Series 2019 CFC Bonds. NEITHER THE SERIES 2019 CFC PROJECT NOR ANY OTHER PROPERTIES OF THE AIRPORT ARE SUBJECT TO ANY MORTGAGE OR OTHER LIEN FOR THE BENEFIT OF THE OWNERS OF THE SERIES 2019 CFC BONDS, AND NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE BOARD, THE COUNTY OF KENTON, THE COMMONWEALTH OF KENTUCKY OR ANY POLITICAL SUBDIVISIONS OR AGENCY OF THE COMMONWEALTH OF KENTUCKY IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE SERIES 2019 CFC BONDS. SEE “SOURCES OF PAYMENT AND SECURITY.” The purchase and ownership of the Series 2019 CFC Bonds involves investment risk and may not be suitable for all investors. This cover page contains certain information for general reference only. It is not intended to be a summary of the security or terms of the Series 2019 CFC Bonds. Investors are advised to read the entire Official Statement, including any portion hereof included by reference, to obtain information essential to the making of an informed decision, giving particular attention to the matters discussed under “CERTAIN INVESTMENT CONSIDERATIONS.” Capitalized terms used on this cover page and not otherwise defined have the meanings set forth herein. The Series 2019 CFC Bonds are offered when, as and if issued by the Board, subject to the approval of validity by Squire Patton Boggs (US) LLP, Bond Counsel, and to certain other conditions. Certain legal matters will be passed upon by Ziegler & Schneider, P.S.C., general counsel to the Board, and for the Underwriters by their counsel, Barnes & Thornburg LLP. Frasca & Associates, LLC serves as an independent Municipal Advisor to the Board. It is expected that delivery of the Series 2019 CFC Bonds in book‑entry form will be made through the facilities of DTC on or about March 20, 2019. BofA Merrill Lynch PNC Capital Markets LLC Dated: March 5, 2019 Maturities, Amounts, Interest Rates, Prices, Yields and CUSIP Numbers $103,130,000 Kenton County (Kentucky) Airport Board Cincinnati/Northern Kentucky International Airport Senior Customer Facility Charge Taxable Revenue Bonds (Consolidated Ground Transportation Facility) Series 2019 $33,435,000 Serial Bonds Maturity Principal Interest (01/01) Amount Rate Price Yield CUSIP† 2022 $2,080,000 3.080% 100.00 3.080% 491034AA2 2023 2,145,000 3.134 100.00 3.134 491034AB0 2024 2,210,000 3.234 100.00 3.234 491034AC8 2025 2,285,000 3.333 100.00 3.333 491034AD6 2026 2,360,000 3.483 100.00 3.483 491034AE4 2027 2,440,000 3.576 100.00 3.576 491034AF1 2028 2,530,000 3.726 100.00 3.726 491034AG9 2029 2,625,000 3.826 100.00 3.826 491034AH7 2030 2,725,000 3.926 100.00 3.926 491034AJ3 2031 2,830,000 4.026 100.00 4.026 491034AK0 2032 2,945,000 4.126 100.00 4.126 491034AL8 2033 3,065,000 4.226 100.00 4.226 491034AM6 2034 3,195,000 4.326 100.00 4.326 491034AN4 $18,235,000, 4.489% Term Bonds Due January 1, 2039, Price 100.00, Yield 4.489%, CUSIP† No. 491034AP9 $51,460,000, 4.689% Term Bonds Due January 1, 2049, Price 100.00, Yield 4.689%, CUSIP† No. 491034AQ7 † CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. Copyright © 2019 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. 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 are provided for convenience of reference only. None of the Board, the Underwriters nor their agents or counsel are responsible for the accuracy of such numbers. No representation is made as to their correctness on the Bonds or as included herein. The CUSIP number for a specific maturity is subject to being changed after the issuance 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. Kenton County (Kentucky) Airport Board Airport Board J. Michael Schlotman, Chair Paul T. Verst, Vice Chair Kevin W. Canafax Bryan Carlisle Kathy F. Collins Mike L. Drysdale Kay Geiger John A. Mocker Jr. Paul F. Ritter Lisa Sauer Todd M. Schneider William M. Schuler Chad L. Summe Airport Management Candace S. McGraw, Chief Executive Officer Tim Zeis, Chief Operating Officer Sheila R. Hammons, Chief Financial Officer Brian Cobb, Chief Innovation Officer General Counsel to the Board Ziegler & Schneider, P.S.C. Bond Counsel Squire Patton Boggs (US) LLP Municipal Advisor Frasca & Associates, LLC Independent Auditor Blue & Co., LLC Airport Consultant LeighFisher, Inc. REGARDING THE USE OF THIS OFFICIAL STATEMENT 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 respective 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 is being used in connection with the sale of the Series 2019 CFC Bonds and may not be reproduced or used, in whole or in part, for any other purpose.