Hospital Authority No. 2 of Douglas County and Hospital
Total Page:16
File Type:pdf, Size:1020Kb
PRELIMINARY OFFICIAL STATEMENT DATED JULY 25, 2016 NEW ISSUE Ratings: S&P: “AA-” BOOK ENTRY ONLY Fitch: “AA-” See “DESCRIPTION OF RATINGS” herein. In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions and assuming the accuracy of certain representations and continuing compliance with certain covenants, interest on the Series 2016 Bonds is excludable from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax. Bond Counsel is also of the opinion that under existing laws, regulations, rulings and judicial decisions, interest on the Series 2016 Bonds is exempt from present Nebraska state income taxation. For a more complete description of such opinions of Bond Counsel, see “TAX EXEMPTION” herein. $130,420,000* $149,605,000* HOSPITAL AUTHORITY NO. 2 OF HOSPITAL AUTHORITY NO. 1 OF DOUGLAS COUNTY, NEBRASKA SARPY COUNTY, NEBRASKA HEALTH FACILITIES REVENUE BONDS HEALTH FACILITIES REVENUE BONDS (NEBRASKA MEDICINE) (NEBRASKA MEDICINE) SERIES 2016 SERIES 2016 Dated: Date of Delivery Maturities, Principal Amounts, Interest Rates, Prices, Yields and CUSIPs© are Shown on the Inside Cover The (i) Hospital Authority No. 2 of Douglas County, Nebraska Health Facilities Revenue Bonds (Nebraska Medicine) Series 2016 (the “Douglas Authority Bonds”) and (ii) Hospital Authority No. 1 of Sarpy County, Nebraska Health Facilities Revenue Bonds (Nebraska Medicine) Series 2016 (the “Sarpy Authority Bonds” and, together with the Douglas Authority Bonds, the “Series 2016 Bonds”) will be issued and secured under separate Bond Indentures of Trust, each dated as of August 1, 2016 (the “Bond Indentures”), between each of the issuing Authorities (as defined herein), respectively, and First National Bank of Omaha, as bond trustee (the “Bond Trustee”). The proceeds from the sale of the Douglas Authority Bonds will be loaned to The Nebraska Medical Center, a Nebraska nonprofit corporation (“TNMC”), pursuant to the provisions of a Loan Agreement dated as of August 1, 2016 (the “Douglas Loan Agreement”) between Hospital Authority No. 2 of Douglas County, Nebraska (the “Douglas Authority”) and TNMC. The proceeds from the sale of the Sarpy Authority Bonds will be loaned to Bellevue Medical Center, LLC, a Nebraska limited liability company (“BMC”), pursuant to the provisions of a Loan Agreement dated as of August 1, 2016 (the “Sarpy Loan Agreement” and, together with the Douglas Loan Agreement, the “Loan Agreements”) between Hospital Authority No. 1 of Sarpy County, Nebraska (the “Sarpy Authority” and, together with the Douglas Authority, the “Authorities”) and BMC. Except as described in this Official Statement, the principal of, redemption premium, if any, and interest on each series of the Series 2016 Bonds will be payable solely from payments to be made under the related Loan Agreement and on the related Series 2016 Obligation (as defined herein) to be issued under the Master Indenture (as defined herein). Pursuant to the applicable Bond Indenture, each Authority will pledge and assign its Series 2016 Obligation and certain of its rights under the applicable Loan Agreement to the Bond Trustee as security for the related series of the Series 2016 Bonds. The sources of payment of, and security for, the Series 2016 Bonds are more fully described in this Official Statement. The Series 2016 Bonds are being issued as fully registered bonds in denominations of $5,000 or any integral multiple thereof. Interest will be payable by the Bond Trustee to the registered owners of the Series 2016 Bonds on each May 15 and November 15, commencing November 15, 2016. As initially issued, the Series 2016 Bonds will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company, New York, New York (“DTC”), the securities depository for the Series 2016 Bonds. Purchasers of the Series 2016 Bonds will not receive certificates representing their interests in the Series 2016 Bonds purchased. Ownership will be evidenced by book‑entry only. As long as Cede & Co. is the registered owner, as nominee of DTC, payments on the Series 2016 Bonds will be made to such registered owner, and disbursement of such payments will be the responsibility of DTC and its participants. See Appendix G, “BOOK-ENTRY SYSTEM” attached hereto. The Series 2016 Bonds are subject to optional, extraordinary and mandatory redemption, and optional purchase, as set forth herein. See “THE SERIES 2016 BONDS—Redemption of the Series 2016 Bonds” herein. THE SERIES 2016 BONDS ARE LIMITED OBLIGATIONS OF THE RELATED AUTHORITY, PAYABLE SOLELY FROM AMOUNTS PLEDGED UNDER THE RESPECTIVE BOND INDENTURE. THE SERIES 2016 BONDS AND THE INTEREST THEREON SHALL NOT CONSTITUTE A DEBT, LIABILITY OR GENERAL OBLIGATION OF THE STATE OF NEBRASKA, THE COUNTY OF DOUGLAS, THE COUNTY OF SARPY OR OF ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF NEBRASKA WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISIONS OR STATUTORY LIMITATION AND SHALL NOT CONSTITUTE A PLEDGE OF THE FAITH AND CREDIT OF THE STATE OF NEBRASKA, THE COUNTY OF DOUGLAS, THE COUNTY OF SARPY OR OF ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF NEBRASKA. THE ISSUANCE OF THE SERIES 2016 BONDS SHALL NOT, DIRECTLY, INDIRECTLY, OR CONTINGENTLY, OBLIGATE THE STATE OF NEBRASKA, THE COUNTY OF DOUGLAS, THE COUNTY OF SARPY OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF NEBRASKA TO LEVY ANY FORM OF TAXATION THEREFORE OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT. THE AUTHORITIES HAVE NO TAXING POWER. This cover page contains certain information for immediate reference only. It is not intended to be a complete summary of the terms of or security for the Series 2016 Bonds. Investors must read this entire Official Statement, including the Appendices, to obtain information essential to the making of an informed investment decision. The Series 2016 Bonds are offered when, as and if issued and received by the Underwriters (as defined herein), subject to prior sale, withdrawal, or modification of the offer without any notice, and to final approval of the Series 2016 Bonds by the Authorities and to the approval of legality of the Series 2016 Bonds by Kutak Rock LLP, Omaha, Nebraska, Bond Counsel. Certain legal matters will be passed upon for the Obligated Group by Kutak Rock LLP, Omaha, Nebraska, for the Douglas Authority by Joseph C. Byrne, Esq, for the Sarpy Authority by Adams & Sullivan P.C., L.L.O. and for the Underwriters by their counsel Chapman and Cutler LLP, Chicago, Illinois. The Series 2016 Bonds are expected to be available for delivery through the facilities of DTC on or about August __, 2016. Barclays Wells Fargo Securities The date of this Official Statement is August __, 2016. * Preliminary, subject to change. © Copyright 2008, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s CUSIP Services Bureau, a division of the McGraw‑Hill Companies, Inc., and is set forth herein for convenience for reference only. Neither the Underwriters, the Authorities nor the Members of the Obligated Group are responsible for the selection of CUSIP numbers and neither make any representation as to their correctness on the Series 2016 Bonds or as set forth in this Official This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without any notice. Under no circumstances shall this Preliminary to sell or Official Statement constitute an offer This Preliminary notice. contained herein are subject to completion, amendment or other change without any Official Statement and the information 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, the solicitation of an offer Statement. $130,420,000* Hospital Authority No. 2 of Douglas County, Nebraska Health Facilities Revenue Bonds (Nebraska Medicine) Series 2016 Maturities, Principal Amounts, Interest Rates, Yields and CUSIPs© Maturity Principal Amount Interest Rate Yield CUSIP© $_________ ____% Term Bond due May 15, 20___; Yield ____%; CUSIP© _____________ $_________ ____% Term Bond due May 15, 20___; Yield ____%; CUSIP© _____________ $149,605,000* Hospital Authority No. 1 of Sarpy County, Nebraska Health Facilities Revenue Bonds (Nebraska Medicine) Series 2016 Maturities, Principal Amounts, Interest Rates, Yields and CUSIPs© Maturity Principal Amount Interest Rate Yield CUSIP© $________ ____% Term Bond due May 15, 20___; Yield ____%; CUSIP© _____________ $________ ____% Term Bond due May 15, 20___; Yield ____%; CUSIP© _____________ * Preliminary, subject to change. © Copyright 2008, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s CUSIP Services Bureau, a division of the McGraw‑Hill Companies, Inc., and is set forth herein for convenience for reference only. Neither the Underwriters, the Authorities nor the Members of the Obligated Group are responsible for the selection of CUSIP numbers and neither make any representation as to their correctness on the Series 2016 Bonds or as set forth in this Official Statement REGARDING THE OFFICIAL STATEMENT This Official Statement does not constitute an offering of any security other than the offering of the Series 2016 Bonds identified on the cover. No dealer, broker, sales representative or other person has been authorized by the Authorities, TNMC, BMC, any other Member of the Obligated Group described herein or the Underwriters to give any information or to make any representation with respect to the Series 2016 Bonds other than as contained in this Official Statement. Any other information or representation should not be relied upon as having been given or authorized by the Authorities, TNMC, BMC, any other Members of the Obligated Group or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall not be any sale of the Series 2016 Bonds, by any person in any jurisdiction in which it is unlawful to make such offer, solicitation or sale.