Airport Revenue Refunding Bonds Series 2015 a (PDF)
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Book-Entry Only RATINGS: Moody’s: “A2” (stable outlook) S&P: “A” (stable outlook) Fitch: “A” (stable outlook) See “Ratings” herein In the opinion of Co-Bond Counsel, interest on the Bonds is not includable in gross income for purposes of federal income taxation under existing statutes, regulations, rulings and court decisions, except as to interest on any Bond during any period such Bond is held by a person who is a “substantial user” of the facilities refinanced by the Bonds or a “related person” within the meaning of Section 147(a) of the Internal Revenue Code of 1986, as amended (the “Code”), subject to the condition described in “TAX MATTERS” herein. Interest on the Bonds is treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations. Under the Code, interest on the Bonds may be subject to certain other taxes affecting corporate holders of the Bonds. Under the laws of the Commonwealth of Pennsylvania, the Bonds are exempt from personal property taxes in Pennsylvania, and interest on the Bonds is exempt from Pennsylvania personal income tax and the Pennsylvania corporate net income tax. For a more complete discussion, see “TAX MATTERS” herein. $97,780,000 CITY OF PHILADELPHIA, PENNSYLVANIA AIRPORT REVENUE REFUNDING BONDS, SERIES 2015A (AMT) Dated: Date of Delivery Due: June 15, as shown on inside cover Defined Terms All capitalized terms that are not otherwise defined on this cover page have the meanings provided to such terms in this Official Statement. The Bonds The City of Philadelphia, Pennsylvania (the “City”), a corporation and body politic and City of the First Class existing under the laws of the Commonwealth of Pennsylvania (the “Commonwealth”) is issuing the above-referenced bonds (the “Bonds”) for the benefit of the Airport System owned by the City and operated by the Division of Aviation of the City’s Department of Commerce. Purpose The Bonds, together with other available moneys, are being issued for the purpose of providing funds to (i) currently refund all of the City’s outstanding Airport Revenue Bonds, Series 2005A, as more fully described herein under “PLAN OF FINANCE – Refunded Bonds” (the “Refunded Bonds”), and (ii) pay the costs of issuance of the Bonds. Security THE BONDS ARE LIMITED OBLIGATIONS OF THE CITY OF PHILADELPHIA PAYABLE SOLELY FROM THE PLEDGED AMOUNTS (AS DESCRIBED HEREIN). THE BONDS ARE NOT SECURED BY A PLEDGE OF THE FULL FAITH, CREDIT OR TAXING POWER OF THE CITY. THE BONDS DO NOT CREATE ANY DEBT OR CHARGE AGAINST THE TAX OR GENERAL REVENUES OF THE CITY, OR CREATE A LIEN AGAINST ANY PROPERTY OF THE CITY OTHER THAN THE PLEDGED AMOUNTS. Redemption The Bonds are subject to optional redemption prior to maturity. See “DESCRIPTION OF THE BONDS – Optional Redemption of the Bonds”. Interest Payment Dates Interest on the Bonds is payable semiannually on each June 15 and December 15, commencing December 15, 2015. Tax Status For information on the tax status of the Bonds, see the italicized language at the top of this cover page and “TAX MATTERS” herein. Delivery Date It is expected that the Bonds will be available for delivery to The Depository Trust Company (“DTC”) on or about September 3, 2015. This cover page contains certain information for quick reference only. It is not intended to be a summary of the Bonds or this Official Statement. Investors must read the entire Official Statement, including the Appendices, which are an integral part hereof, to obtain information essential to the making of an informed investment decision regarding the Bonds. The Bonds are offered when, as and if issued and accepted by the Underwriters, subject to the approving legal opinion of Saul Ewing LLP and Andre C. Dasent, P.C., both of Philadelphia, Pennsylvania, Co-Bond Counsel. Certain legal matters relating to disclosure will be passed upon for the City by Nixon Peabody LLP, New York, New York, and Turner Law, P.C., Philadelphia, Pennsylvania, Co-Disclosure Counsel. Certain legal matters will be passed upon for the City of Philadelphia by the City Solicitor. Certain legal matters will be passed upon for the Underwriters by their Co-Underwriters’ Counsel, Duane Morris LLP and Ahmad Zaffarese LLC, both of Philadelphia, Pennsylvania. RBC Capital Markets Siebert Brandford Shank & Co., L.L.C. Barclays CastleOak Securities, L.P. Goldman, Sachs & Co. Dated: August 26, 2015 $97,780,000 CITY OF PHILADELPHIA, PENNSYLVANIA AIRPORT REVENUE REFUNDING BONDS, SERIES 2015A (AMT) MATURITY SCHEDULE Maturity Date CUSIP** (June 15) Principal Amount Interest Rate Price Yield 717817 2016 $4,120,000 4.00% 102.708 0.53% RV4 2017 3,135,000 4.00 105.343 0.97 RW2 2018 3,255,000 4.00 107.241 1.34 RX0 2019 3,390,000 5.00 112.274 1.64 RY8 2020 3,560,000 5.00 113.862 1.95 RZ5 2021 3,735,000 5.00 114.714 2.27 SA9 2022 3,920,000 5.00 114.900 2.59 SB7 2023 4,120,000 5.00 115.437 2.78 SC5 2024 4,325,000 5.00 115.923 2.93 SD3 2025 4,540,000 5.00 116.199 3.07 SE1 2026 4,765,000 5.00 114.741* 3.23 SF8 2027 5,005,000 5.00 113.931* 3.32 SG6 2028 5,260,000 5.00 113.127* 3.41 SH4 2029 5,515,000 5.00 112.418* 3.49 SJ0 2030 5,800,000 5.00 111.715* 3.57 SK7 2031 2,190,000 4.00 99.185 4.07 SR2 2031 3,900,000 5.00 111.017* 3.65 SL5 2032 6,365,000 4.00 98.790 4.10 SM3 2033 6,625,000 5.00 110.152* 3.75 SN1 2034 6,955,000 5.00 109.808* 3.79 SP6 2035 7,300,000 5.00 109.551* 3.82 SQ4 * Priced at the stated yield to the June 15, 2025 optional redemption date at a redemption price of 100% of the principal amount of such Bonds or portions thereof to be redeemed, plus accrued interest to the redemption date. ** CUSIP is a registered trademark of the American Bankers Association (the “ABA”). CUSIP data is provided by CUSIP Global Services, which is managed on behalf of the ABA by S&P Capital IQ, a division of McGraw-Hill Financial, Inc. The CUSIP numbers listed above are being provided solely for the convenience of the holders of the Bonds only at the time of issuance of the Bonds and the City and the Underwriters do not make any representation with respect to such CUSIP numbers or undertake any responsibility for their accuracy now or at any time in the future. The CUSIP numbers are 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 of the Bonds or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that may be applicable to all or a portion of the Bonds. THE CITY OF PHILADELPHIA, PENNSYLVANIA _________________ MAYOR HONORABLE MICHAEL A. NUTTER _________________ MAYOR’S CHIEF OF STAFF Everett A. Gillison _________________ MAYOR’S CABINET Richard Negrin, Esq. ....................................................................................................................... Managing Director Rob Dubow ....................................................................................................................................... Director of Finance Shelley R. Smith. ....................................................................................................................................... City Solicitor Alan Greenberger .......................... Deputy Mayor for Planning and Economic Development and Commerce Director Susan Kretsge .............................................................................................. Deputy Mayor for Health and Opportunity Michael DiBerardinis .................................................... Deputy Mayor for Environmental and Community Resources Desiree Peterkin Bell .............................. Director of Communications and Strategic Partnerships/City Representative Lori A. Shorr, Ph.D .................................................................................................................. Chief Education Officer Tumar Alexander .................................................................................................................. First Deputy Chief of Staff Adel Ebeid .............................................................................................................................. Chief Information Officer Katherine Gajewski ............................................................................................................... Director of Sustainability Eva Gladstein .................................... Executive Director, Mayor’s Office of Community Engagement & Opportunity Helen Haynes ................................................................................................................................ Chief Cultural Officer Amy L. Kurland .................................................................................................................................. Inspector General Stephanie Tipton .............................................................................................................. Acting Chief Integrity Officer Michael Resnick ..................................................................................................................... Director of Public Safety Robert Murken ..................................................................................... Director of Legislative and Government Affairs David G. Wilson ........................................................................................................... First Deputy Managing Director Maia Jachimowicz .............................................................................................................................