Bradley International Airport Revenue Bonds
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NEW ISSUE In the opinion of Co-Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Bonds is excluded from gross income for federal income tax purposes, except interest on any Series 2001A Bond for any period during which it is held by a “substantial user” or a “related person,” as those terms are used in Section 147(a) of the Internal Revenue Code of 1986, as amended, and (ii) interest on the Bonds is excluded from the Connecticut income tax on individuals, trusts and estates and from amounts on which the net Connecticut minimum tax is based in the case of individuals, trusts and estates required to pay the federal alternative minimum tax. Interest on the Bonds is included in gross income for purposes of the Connecticut corporation business tax. The Series 2001A Bonds are “private activity bonds” the interest on which is an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. The Series 2001B Bonds are not “private activity bonds” and therefore the interest on those Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. Interest on the Bonds may be subject to certain federal taxes imposed only on certain corporations. For a more complete discussion of the tax aspects, see “TAX MATTERS” herein. $213,180,000 STATE OF CONNECTICUT Bradley International Airport Revenue Bonds COMPRISED OF $194,000,000 $19,180,000 General Airport Revenue Bonds General Airport Revenue Refunding Bonds Series 2001A (AMT) Series 2001B (Non-AMT) Dated: March 1, 2001 Due: October 1, as shown on the inside cover This Official Statement describes Bradley International Airport (the “Airport”) and other matters relating to the Series 2001A Bonds and Series 2001B Bonds (collectively, the “Bonds”) identified above. The Series 2001A Bonds are being issued to finance various capital improvements at the Airport. The Series 2001B Bonds are being issued to refund a portion of certain outstanding Airport Revenue Bonds of the State of Connecticut (the “State”). The Bonds will be issued under and secured by the Trust Indenture and the First Supplemental Trust Indenture, each dated as of March 1, 2001 (collectively, the “2001 Indenture”) between the State and State Street Bank and Trust Company, as Trustee. The Bonds are special obligations of the State and are payable only from the Pledged Revenues (which includes certain pledged passenger facility charge revenues) and other receipts, funds or moneys pledged therefor pursuant to the 2001 Indenture, subject to a prior lien on Airport revenues securing certain outstanding Airport Revenue Bonds of the State. Neither the State nor any political subdivision thereof is subject to any liability for the Bonds except to the extent of such Pledged Revenues and other receipts, funds or moneys pledged therefor pursuant to the 2001 Indenture. The issuance of the Bonds will not directly or indirectly or contingently obligate the State or any political subdivision thereof to levy or to pledge any form of taxation whatsoever therefor or to make any appropriation for their payment. The Bonds will not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the State or of any political subdivision thereof, except as described in the 2001 Indenture. The Bonds may be owned only in book entry form through a direct or indirect participant in The Depository Trust Company (“DTC”). Interest on the Bonds is payable semiannually on each April 1 and October 1, commencing October 1, 2001. Maturing principal of the Bonds is payable on October 1 in the years shown on the inside cover. Certain of the Bonds are subject to redemption prior to maturity as described herein. The Bonds will not be subject to acceleration upon the occurrence of an event of default or otherwise. The scheduled payment of principal of and interest on the Bonds when due will be guaranteed by a municipal bond insurance policy to be issued simultaneously with the delivery of such Bonds by This cover page contains limited information for quick reference only. It is not a summary of the matters relating to the Bonds. Potential investors must read the entire Official Statement to obtain information essential to making an informed investment decision. See Inside Cover For Maturities, Amounts, Interest Rates And Yields The Bonds are being offered when, as and if issued and received by the Underwriters named below, subject to the approval of their legality by Squire, Sanders & Dempsey L.L.P., New York, New York and Shipman & Goodwin LLP, Hartford, Connecticut, Co-Bond Counsel. Certain legal matters will be passed upon for the Underwriters by Nixon Peabody LLP and Rome McGuigan Sabanosh, P.C., both of Hartford, Connecticut. Ownership of the Bonds is expected to be available through DTC in New York, New York, on or about March 27, 2001. _____________________________________ Honorable Denise L. Nappier Treasurer of the State of Connecticut Bear, Stearns & Co. Inc. First Albany Corporation Goldman, Sachs & Co. Salomon Smith Barney Advest, Inc. A.G. Edwards & Sons, Inc. Apex Securities, Inc. Belle Haven Investments, L.P. First Union National Bank Merrill Lynch & Co. Morgan Stanley Dean Witter M.R. Beal & Co. Quick & Reilly, Inc. Dain Rauscher Incorporated Roosevelt & Cross, Inc. Siebert Brandford Shank & Co., L.L.C. State Street Bank and Trust Co. March 15, 2001 $194,000,000 General Airport Revenue Bonds Series 2001A (AMT) Maturity Principal Interest October 1 Amount Rate Yield 2002 $1,390,000 3.50% 3.20% 2003 1,440,000 3.50 3.50 2004 3,740,000 3.60 3.65 2005 3,880,000 3.75 3.75 2006 920,000 3.80 3.89 2006 3,125,000 5.00 3.89 2007 4,225,000 4.00 4.00 2008 4,400,000 4.10 4.10 2009 1,480,000 4.20 4.23 2009 3,120,000 5.25 4.23 2010 1,445,000 4.30 4.33 2010 3,390,000 5.25 4.33 2011 940,000 4.375 4.42 2011 4,150,000 5.25 4.42 2012 1,280,000 4.50 4.53 2012 4,075,000 5.25 4.53* 2013 5,635,000 5.25 4.63* 2014 5,935,000 5.25 4.73* 2015 6,260,000 5.25 4.82* 2016 6,595,000 5.25 4.90* 2017 6,955,000 5.25 4.97* 2018 7,315,000 5.00 5.06 2019 7,690,000 5.05 5.10 2020 8,095,000 5.125 5.15 2021 8,525,000 5.15 5.17 2022 6,910,000 5.15 5.19 $31,480,000 5.125% Term Bonds due October 1, 2026 – Yield 5.23% $49,605,000 5.125% Term Bonds due October 1, 2031 – Yield 5.25% (plus accrued interest from March 1, 2001) *Priced assuming redemption on April 1, 2012; however, any such redemption is at the optional election of the State. See “THE BONDS – Redemption” herein. $19,180,000 General Airport Revenue Refunding Bonds Series 2001B (Non-AMT) Maturity Principal Interest October 1 Amount Rate Yield 2002 $ 235,000 0 3.25% 0 3.10% 2003 245,000 3.40 3.40 2004 255,000 3.50 3.50 2005 260,000 3.60 3.60 2006 270,000 3.75 3.75 2007 285,000 3.875 3.875 2008 295,000 4.00 4.00 2009 305,000 4.10 4.10 2010 320,000 4.20 4.20 2011 8,190,000 4.25 4.27 2012 8,520,000 4.30 4.37 (plus accrued interest from March 1, 2001) No dealer, broker 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 contained herein, and, if given or made, such information or representation must not be relied upon as having been authorized by the State of Connecticut or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy any securities other than the Bonds, and there will not be any sale of the Bonds where it is not allowed by law. The delivery of this Official Statement at any time does not imply that the information herein is correct as of any time subsequent to its date. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF CONTENTS INTRODUCTION...................................................................... 1 AIP Grants............................................................................43 Purpose of the Bonds.............................................................. 1 FHWA Grants.......................................................................43 Bradley International Airport ................................................. 2 Airport Funds........................................................................43 Security for the Bonds............................................................ 2 Bond Proceeds ......................................................................43 Bond Insurance....................................................................... 4 PFC Program ........................................................................44 Report of the Airport Financial Consultant ............................ 4 Airport PFC Approvals.........................................................45 Miscellaneous......................................................................... 4 Termination of Authority to Impose PFCs............................46 AUTHORIZATION FOR THE BONDS ................................... 5 PFC Funding Issues..............................................................47 Legal Authority—State Bond Commission............................ 5 SOURCES AND USES OF BOND PROCEEDS.....................48 Agreement of the