State of Arkansas
Total Page:16
File Type:pdf, Size:1020Kb
PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 9, 2016 NEW ISSUE RATINGS: S&P: AA BOOK-ENTRY ONLY Moody’s: Aa1 In the opinion of Bond Counsel, under existing law and assuming compliance with covenants of the State in the Bond documents, interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporation; however, such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. In Bond Counsel’s further opinion, interest on the Bonds is exempt from all taxes of the State of Arkansas including income, inheritance, and property taxes. See TAX EXEMPTION herein. $30,250,000* STATE OF ARKANSAS WATER, WASTE DISPOSAL AND POLLUTION ABATEMENT FACILITIES GENERAL OBLIGATION BONDS REFUNDING SERIES 2016A Dated: Date of Delivery Due: July 1, as shown on the inside front cover The State of Arkansas Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds, Refunding Series 2016A (the “Bonds”) will be issued pursuant to a book-entry only system and will be registered in the name of Cede & Co. as nominee of the Depository Trust Company (“DTC”), New York, New York. There will be no distribution of the Bonds to ultimate purchasers (“Beneficial Owners”). (SeeTHE BONDS, Book-Entry Only System, herein.) The Bonds are issuable as registered bonds without coupons in the denominations of $5,000 each or any integral multiple thereof. Principal is payable annually on July 1, in each of the years as shown below, and interest is payable semiannually on January 1 and July 1, commencing January 1, 2017. Interest will be payable by check, draft or wire transfer of the Paying Agent sent to the Registered Owner as of the Record Date. Principal is payable at the principal office of Simmons Bank, in the City of Pine Bluff, Arkansas, Paying Agent and Bond Registrar. So long as DTC or its nominee is the owner of the Bonds, disbursement of payment of principal and interest to DTC is the responsibility of the Paying Agent, disbursement of such payments to DTC Participants (as defined herein) is the responsibility of DTC, and the responsibility of disbursements of such payments to Beneficial Owners is the responsibility of DTC Participants, as more fully described herein. The Bonds will constitute general obligations of the State of Arkansas and are secured by an irrevocable pledge of the full faith, credit, and resources of the State. The Bonds are issued to provide financing for the refunding of the State of Arkansas Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds, Series 2007; Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds, Series 2008; and Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds, Series 2009A. The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as more fully described herein. The Bonds mature on July 1 in the years and in the amounts, bear interest at the rates and are priced to yield as set forth on the inside front cover. (FOR THE MATURITY SCHEDULES, SEE THE INSIDE FRONT COVER) The Bonds are offered when, as and if issued and received by the Underwriter named below. The Bonds are subject to the approval of legality by Friday, Eldredge & Clark, LLP, Little Rock, Arkansas, Bond Counsel for the Arkansas Natural Resources Commission, and subject to satisfaction of certain other conditions. It is expected that the Bonds will be available for delivery in Little Rock, Arkansas, or New York, New York, on or about October 5, 2016. Official Statement dated __________, 2016. This Preliminary Official Statement and the information contained herein are subject to completion or amendment without notice. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of solicitation or the sell to Preliminary this shall circumstances no Under offer an constitute Statement Official This Preliminary notice. without amendment or completion to are subject herein contained the information and Statement Official such jurisdiction. prior of any or qualification under the securities to registration be unlawful laws solicitation or sale would sale of these securities jurisdiction nor shall there be any in any in which such offer, to buy an offer * Preliminary; subject to change. MATURITY SCHEDULE* $25,610,000 Serial Bonds Maturity Principal July 1 Amount Rate(%) Yield(%) CUSIP** 2017 $1,470,000 2018 1,980,000 2019 1,570,000 2020 1,290,000 2021 1,360,000 2022 1,425,000 2023 1,500,000 2024 1,580,000 2025 1,655,000 2026 1,740,000 2027 1,825,000 2028 1,910,000 2029 2,010,000 2030 2,110,000 2031 2,185,000 $4,640,000 ____% Term Bonds Due July 1, 2033; Yield ____% - CUSIP: ___________** * Preliminary; subject to change. ** CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by the CUSIP Service Bureau, operated by Standard & Poor’s, a division of The McGrawHill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services Bureau. CUSIP numbers have been assigned by an independent company not affiliated with the Issuer and are included solely for the convenience of the registered owners of the Bonds. The Commission and the Underwriter are not responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness by the Commission or the Underwriter 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. STATE OF ARKANSAS EXECUTIVE OFFICERS ASA HUTCHINSON Governor TIM GRIFFIN MARK MARTIN Lieutenant Governor Secretary of State DENNIS MILLIGAN ANDREA LEA Treasurer of State Auditor of State LESLIE RUTLEDGE JOHN THURSTON Attorney General Commissioner of State Lands ____________________ ARKANSAS NATURAL RESOURCES COMMISSION MIKE CARTER DON RICHARDSON ANN CASH Chairman Vice Chairman SLOAN HAMPTON BRUCE LEGGITT BILL POYNTER NEAL ANDERSON FRED FOWLKES JERRY HUNTON ____________ BRUCE HOLLAND Executive Director ____________ BOND COUNSEL FRIDAY, ELDREDGE & CLARK, LLP Little Rock, Arkansas ____________ UNDERWRITER STEPHENS INC. Little Rock, Arkansas ____________ FINANCIAL ADVISOR RAYMOND JAMES & ASSOCIATES, INC. Little Rock, Arkansas i No dealer, broker, salesman, or other person has been authorized by the State of Arkansas, the Arkansas Natural Resources Commission, the Financial Advisor, or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person 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, create any implication that there has been no change in the affairs of the State of Arkansas or the Arkansas Natural Resources Commission since the date hereof. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. [Remainder of page intentionally left blank.] ii TABLE OF CONTENTS PAGE SUMMARY OF CERTAIN INFORMATION v THE OFFERING v INTRODUCTORY STATEMENT 1 Authority for the Bonds 1 Additional Bonds under the Act 1 Additional General Obligation Bonds of the State 1 Sources and Uses of Funds 2 Annual Debt Service Requirements 3 Sources of Information 3 THE BONDS 3 Description of the Bonds 3 Redemption 4 Notice of Redemption 5 Book-Entry Only System 5 Security for the Bonds 7 THE COMMISSION 7 ORGANIZATION AND GOVERNMENT OF THE STATE OF ARKANSAS 8 Legislative Branch 8 Executive Branch 8 Judicial Branch 9 GENERAL INFORMATION CONCERNING THE STATE OF ARKANSAS 9 Location, Size and Population 9 Major Cities 10 Transportation 10 Education 10 Medical and Health Care Facilities 11 Recreation and Culture 11 ECONOMIC INFORMATION CONCERNING THE STATE OF ARKANSAS 12 Gross Domestic Product 12 Retail Sales 12 Property Values 12 Employment Distribution 13 Unemployment and Employment Trends 13 Trends in Personal Income 14 Manufacturing 14 Fortune 500 Firms 15 Agriculture 15 INDEBTEDNESS OF THE STATE OF ARKANSAS 15 General and Revenue Obligations 15 Special Obligation Bonds 19 Guaranteed Indebtedness 19 Lease Obligations 20 iii FINANCIAL INFORMATION CONCERNING THE STATE OF ARKANSAS 20 Financial Organizations and Management 20 Budget and Appropriation Process 20 Revenue