Utah Transit Authority [$218500000]
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PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 30, 2017 NEW ISSUE Ratings: [Fitch “AA”; Moody’s “A1”; S&P “A+”] See “MISCELLANEOUS—Bond Ratings” herein. In the opinion of Gilmore & Bell, P.C., Bond Counsel, under existing law and assuming continued compliance with certain re- quirements of the Internal Revenue Code of 1986, as amended, the interest on the 2018 Bonds (including any original issue dis- count properly allocable to an owner thereof) 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 corporations. Bond Counsel is also of the opinion that the interest on the 2018 Bonds is exempt from State of Utah individual income taxes. See “TAX MAT- TERS” herein. * [$218,500,000] Utah Transit Authority Subordinated Sales Tax Revenue and Refunding Bonds, Series 2018 * ithout any notice. Under no circumstances shall this PRELIMINARY The [$218,500,000] Subordinated Sales Tax Revenue Bonds, Series 2018, are issued by the Authority as fully–registered bonds and, when initially issued, will be in book–entry form, registered in the name of Cede & Co., as nominee for The Deposito- ry Trust Company, New York, New York. DTC will act as securities depository for the 2018 Bonds. Principal of and interest on the 2018 Bonds (interest payable June 15 and December 15 of each year, commencing [Decem- ber 15, 2018] are payable by ZB, National Association, dba Zions Bank, Corporate Trust Department, Salt Lake City, Utah, as rities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to Paying Agent, to the registered owners thereof, initially DTC. The 2018 Bonds are subject to optional [and mandatory sinking fund redemption] prior to maturity as described herein. See “THE 2018 BONDS—Redemption Provisions” herein. The 2018 Bonds are being issued for financing certain transportation related projects and to refund certain subordinated sales tax revenue bonds previously issued by of the Authority and paying costs associated with the issuance of the 2018 Bonds. See “PLAN OF REFUNDING and “THE 2018 PROJECTS” herein. The 2018 Bonds, together with certain outstanding and additional parity obligations issued under the Subordinate Indenture, are special limited obligations of the Authority that are payable solely from and secured by a pledge of Pledged Revenues and certain other moneys pledged therefor in the Subordinate Indenture, subject to the prior lien securing the Senior Bonds. The principal and expected source of Pledged Revenues consists of certain sales and use taxes collected by the Authority. No assurance can be given that the Pledged Revenues will remain sufficient for the payment of principal of and interest on the 2018 Bonds and the Authority is limited by Utah law in its ability to increase the rate of such taxes. See “RISK FACTORS AF- FECTING UTAH TRANSIT AUTHORITY AND THE 2018 BONDS” herein. The 2018 Bonds do not constitute a general obli- gation of the Authority, and are not obligations of the State of Utah or any other agency or other political subdivision or entity of the State of Utah (other than the Authority). The Authority will not mortgage or grant any security interest in any of its physical n of an offer to buy nor shall there be any sale of secu be any sale of these an offer buy nor shall there to n of assets to secure payment of the 2018 Bonds. See “SECURITY FOR THE SUBORDINATE BONDS” herein. information contained herein are subject to completion, amendment or other change w Dated: Date of Delivery1 Due: December 15, as shown on the inside front cover See the inside front cover for the maturity of the 2018 Bonds. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire OFFICIAL STATEMENT to obtain information essential to the making of an informed investment decision. This OFFICIAL STATEMENT is dated January __, 2018, and the information contained herein speaks only as of that date. [Wells Fargo Securities Morgan Stanley] * Preliminary; subject to change. This PRELIMINARY OFFICIAL STATEMENT and the OFFICIAL STATEMENT constitute an offer to sell or the solicitatio registration or qualification under the securities laws of any such jurisdiction. 1 The anticipated date of delivery is [____________, February __, 2018. Utah Transit Authority [$218,500,000]* Subordinated Sales Tax Revenue and Refunding Bonds, Series 2018 Dated: Date of Delivery1 Due: December 15, as shown below Due CUSIP Principal Interest Yield/ December 15 917565 Amount* Rate Price 20__……….. % % 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. 20__……….. $________ ____% Term Bond Due December 15, 20__*—Price ___% (CUSIP 917565 ____) * Preliminary; subject to change. 1 The anticipated date of delivery is [____________, February __, 2018]. CUSIP is a registered trademark of the American Bankers Association. CUSIP Global Services is managed on behalf of the American Bankers Association by S&P Capital IQ. Table Of Contents Page Page INTRODUCTION .................................................................. 1 [Audits Of The Authority; Legislative Auditor The Authority And The System ....................................... 1 Report] ........................................................................ 31 The 2018 Bonds; Purpose ................................................ 2 The Authority’s Service Area ........................................ 32 Authorization Of The 2018 Bonds; Outstanding DEBT STRUCTURE OF THE UTAH TRANSIT Subordinate Bonds; Additional Subordinate Bonds ..... 2 AUTHORITY .................................................................... 35 Outstanding Senior Bonds; Additional Senior Bonds ..... 2 Outstanding Debt Of The Authority .............................. 35 Security And Source Of Payment .................................... 3 Debt Service Schedule Of Outstanding Sales Tax No Debt Service Reserve Fund For The 2018 Bonds ...... 3 Revenue Bonds By Fiscal Year .................................. 36 Redemption Provisions .................................................... 3 Total Senior Bonds Debt Service ................................... 36 Registration, Denominations, Manner Of Payment ......... 3 Total Subordinate Bonds Debt Service .......................... 37 Transfer Or Exchange; Regular Record Date .................. 4 Total Debt Service Table ............................................... 38 Tax Matters Regarding The 2018 Bonds ......................... 4 No Defaulted Obligations .............................................. 39 Professional Services ....................................................... 4 Future Issuance Of Debt ................................................ 39 Conditions Of Delivery, Anticipated Date, Manner FINANCIAL INFORMATION REGARDING UTAH And Place Of Delivery ................................................. 5 TRANSIT AUTHORITY .................................................. 39 Continuing Disclosure Undertaking ................................ 5 Fund Structure; Accounting Basis ................................. 39 Basic Documentation ....................................................... 5 Budget Process ............................................................... 39 Contact Persons ............................................................... 5 Internal Accounting Controls ......................................... 39 CONTINUING DISCLOSURE UNDERTAKING ............... 6 Stabilization Funds ......................................................... 39 RISK FACTORS AFFECTING UTAH TRANSIT Five–Year Financial Summaries .................................... 40 AUTHORITY AND THE 2018 BONDS............................ 6 Other Financial Information ........................................... 43 Dependence On Sales And Use Tax Revenues................ 7 Federal Grants ................................................................ 43 Subordinate Bonds ........................................................... 7 LEGAL MATTERS .............................................................. 45 Federal Funding ............................................................... 7 Absence Of Litigation Concerning The 2018 Bonds ..... 45 Operations Risks And Other Risk Factors ....................... 7 Ongoing Litigation To Which The Authority Is A PLAN OF REFUNDING ....................................................... 8 Party ............................................................................ 45 THE 2018 BONDS ................................................................. 9 General ........................................................................... 46 General ............................................................................ 9 TAX MATTERS .................................................................. 46 Sources And Uses Of Funds ............................................ 9 MISCELLANEOUS ............................................................. 48 Redemption Provisions .................................................... 9 Bond Ratings .................................................................. 48 Debt Service On The 2018 Bonds ................................. 11 Trustee ..........................................................................