Village of Schaumburg
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NEW ISSUE Ratings: BOOK-ENTRY ONLY Moody’s: Aaa Standard & Poor’s: AA+ See “Ratings” in this Official Statement Subject to compliance by the Village with certain covenants, in the opinion of Chapman and Cutler LLP, Chicago, Illinois (“Bond Counsel”), under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes, and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but such interest is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. See “TAX EXEMPTION” herein for a more complete discussion. Interest on the Bonds is not exempt from present State of Illinois income taxes. $69,935,000 VILLAGE OF SCHAUMBURG Cook and DuPage Counties, Illinois General Obligation Refunding Bonds, Series 2012A Dated: Date of Delivery Due: December 1, as shown below The General Obligation Refunding Bonds, Series 2012A (the “Bonds”) of the Village of Schaumburg, Illinois (the “Village”) will be issued in fully registered form and will be registered initially only in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Purchasers of the Bonds will not receive certificates representing their interest in the Bonds purchased. Ownership by the beneficial owners of the Bonds will be evidenced by book-entry only. Payments of principal and interest on the Bonds will be made by Wells Fargo Bank, National Association, Chicago, Illinois, as bond registrar and paying agent, to DTC, which in turn will remit such payments to its participants for subsequent disbursements to the beneficial owners of the Bonds. As long as Cede & Co. is the registered owner as nominee of DTC, payments of principal and interest on the Bonds will be made to such registered owner, and disbursement of such payments will be the responsibility of DTC and its participants. Individual purchases of the Bonds will be made in the principal amount of $5,000 or any integral multiple thereof. The Bonds will bear interest from their dated date at the rates per annum as shown below. Interest on the Bonds (computed on the basis of a 360-day year consisting of twelve 30-day months) will be payable semi-annually on each June 1 and December 1, commencing December 1, 2012. The Bonds maturing on and after December 1, 2023 are subject to redemption prior to maturity at the option of the Village on December 1, 2022 and on any date thereafter. See “THE BONDS – Redemption” herein. The Bonds are valid and legally binding general obligations of the Village, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See “THE BONDS – Security” herein. The proceeds of the Bonds will be used to advance refund a portion of the outstanding General Obligation Bonds, Series 2004B, of the Village, to finance certain capital improvements and to pay costs of issuance of the Bonds. See “REFUNDING PLAN” herein. Maturities, Amounts, Interest Rates and Yields Maturity Interest Maturity Interest (December 1) Amount Rate Yield (December 1) Amount Rate Yield 2016 $ 50,000 4% 0.96% 2022 $4,760,000 4% 2.23% 2017 1,000,000 3 1.12 2023 5,240,000 4 2.44* 2017 2,135,000 4 1.12 2024 5,750,000 4 2.61* 2018 3,545,000 4 1.37 2025 5,940,000 4 2.77* 2019 3,990,000 4 1.61 2026 6,485,000 4 2.89* 2020 1,500,000 3 1.85 2027 7,060,000 3 3.15 2020 2,395,000 4 1.85 2028 6,590,000 3 3.23 2021 3,340,000 2 ¾ 2.06 2028 1,000,000 4 3.10* 2021 1,000,000 4 2.06 2029 8,155,000 4 3.13* * Yield to first call date. The Bonds are offered when, as and if issued by the Village and received by the Underwriters, subject to prior sale, to withdrawal or modification of the offer without notice, and to the approval of legality by Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the Underwriters by their counsel, Katten Muchin Rosenman LLP, Chicago, Illinois and for the Village by its Village Attorney. It is expected that beneficial interests in the Bonds will be available for delivery through the facilities of DTC on or about July 25, 2012. The date of this Official Statement is July 13, 2012 William Blair & Company The Northern Trust Company Citigroup No dealer, broker, salesman or other person has been authorized by the Village or the Underwriters to give any information or to make any representations other than those contained in this Official Statement in connection with the offering described herein and if given or made, such other information or representations must not be relied upon as statements having been authorized by the Village, the Underwriters or any other entity. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy any securities other than the Bonds, nor shall there be any offer to sell or solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. This Official Statement is submitted in connection with the sale of the securities described in it and may not be reproduced or used, in whole or in part, for any other purposes. Unless otherwise indicated, the Village is the source of all tables and statistical and financial information contained in this Official Statement. The information contained in this Official Statement concerning DTC has been obtained from DTC. The other information set forth herein has been furnished by the Village or from other sources believed to be reliable. The information and opinions expressed herein are subject to change without notice, and neither the delivery 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 Village since the date of this Official Statement. This Official Statement should be considered in its entirety and no one factor considered more or less important than any other by reason of its position in this Official Statement. Where statutes, reports or other documents are referred to herein, reference should be made to such statutes, reports or other documents for more complete information regarding the rights and obligations of parties thereto, facts and opinions contained therein and the subject matter thereof. Any statements made in this Official Statement, including the Appendices, involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of such estimates will be realized. This Official Statement contains certain forward-looking statements and information that are based on the Village’s beliefs as well as assumptions made by and information currently available to the Village. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, it responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters does not guarantee the accuracy or completeness of such information. IN CONNECTION WITH THE OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SECURITIES 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. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Table of Contents Page INTRODUCTION ........................................................................................................................................ 1 THE BONDS ................................................................................................................................................ 1 Authority and Purpose........................................................................................................................... 1 General Description .............................................................................................................................. 1 Registration and Transfer ...................................................................................................................... 2 Redemption ........................................................................................................................................... 2 Security ................................................................................................................................................