Official Statement Dated October 8, 2019
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PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 8, 2019 SALE DATE: OCTOBER 16, 2019 RATINGS SALE TIME: 7:45 A.M., PACIFIC TIME Moody’s: Aaa S&P: AAA New Issue, Book-Entry Only (See “Other Information—Ratings.”) In the opinion of Pacifica Law Group LLP, Seattle, Washington, Bond Counsel, under existing law and subject to certain qualifications described herein, the interest on the Bonds is excludable from gross income for federal income tax purposes. In addition, interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. See “Legal and Tax Information—Tax Matters.” $100,345,000(1) in this form. KING COUNTY, WASHINGTON LIMITED TAX GENERAL OBLIGATION BONDS (PAYABLE FROM SEWER REVENUES), 2019 DATED: Date of Initial Delivery DUE: January 1, as shown on page i King County, Washington (the “County”), is issuing its Limited Tax General Obligation Bonds (Payable from Sewer PreliminaryStatement Official prospective to e Revenues), 2019 (the “Bonds”), as fully registered obligations. When issued, the Bonds will be registered in the name of Cede & Co., as Bond owner and nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as initial Securities Depository for the Bonds. The Bonds will be issued initially in book-entry form only in denominations of $5,000 or any integral multiple thereof within a maturity of the Bonds. Purchasers will not receive certificates representing their interest in the Bonds purchased. The Bonds will bear interest payable semiannually on January 1 and July 1, beginning January 1, 2020, to their maturities or prior redemption. The principal of and interest on the Bonds are payable by the fiscal agent of the State of Washington (currently U.S. Bank National Association) (the “Bond Registrar”). For so long as the Bonds are registered in the name of DTC or its nominee, the Bond Registrar is required to make such payments only to DTC, which, in turn, is obligated to remit such principal and interest to DTC participants for subsequent disbursement to Registered Owners of the Bonds as described in Appendix G—Book-Entry System. The Bonds are being issued to provide funds for acquiring and constructing improvements to the County’s sewer system and to pay the costs of issuing the Bonds. The Bonds are subject to redemption prior to maturity as described herein. See “The Bonds—Redemption of the Bonds.” The Bonds are Parity Lien Obligations, which are limited tax general obligation bonds of the County that are additionally secured by a lien and charge on Revenue of the System, subject to Operating and Maintenance Expenses and the payment of the Parity Bonds, as such terms are defined in the Ordinance. The lien on Revenue of the System that secures the Parity Lien Obligations is junior, subordinate, and inferior to the lien and charge on Revenue of the System that secures the Parity Bonds, as defined in this Official Statement. The County has irrevocably covenanted and agreed that, for as long as any of the Bonds are outstanding and unpaid, each year it will include in its budget and levy an ad valorem tax upon all the property within the County subject to taxation in an amount that will be sufficient, together with all other revenues and money of the County legally available for such purposes, to pay the principal of and interest on the Bonds as the same become due. The County has irrevocably pledged that the annual tax to be levied for the payment of such principal and interest will be within and as a part of the tax levy permitted to counties without a vote of the people, and that a sufficient portion of the taxes to be levied and collected annually by the County prior to the full payment of the principal of and interest on the Bonds will be and is irrevocably set aside, pledged, and appropriated for the payment of the principal of and interest on the Bonds. The full faith, credit, and resources of the County have been irrevocably pledged for the annual levy and collection of those taxes and for the prompt payment of the principal of and interest on the Bonds as the same become due. The Bonds do not constitute a debt or indebtedness of the State or any political subdivision thereof, including the Participants (as defined herein), other than the County. The Bonds are offered when, as, and if issued, subject to approval of legality by Pacifica Law Group LLP, Seattle, Washington, Bond Counsel, and certain other conditions. The form of legal opinion of Bond Counsel is attached hereto as Appendix B. Pacifica Law Group LLP also is serving as Disclosure Counsel to the County. It is anticipated that the Bonds will be ready for delivery through the facilities of DTC in New York, New York, or to the Registrar on behalf of DTC by purchasers and others. Upon the sale of the Bonds, the County will an deliver ofStatement the Officialthe complete and County sale Bonds, purchasers the Upon substantially others. and Fast Automated Securities Transfer, on or about October 24, 2019. 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. Dated: ____________, 2019 This is a Preliminary Official Statement, subject to correction and change. The County has authorized the distribution of th of distribution the authorized has County The change. and correction to subject Statement, Official Preliminary is a This (1) Preliminary, subject to change. No dealer, broker, sales representative or other person has been authorized by the County 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 the County. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor may 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 set forth herein has been obtained by the County from County records and from other sources that the County believes to be reliable, but the County does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale of the Bonds shall, under any circumstances, create any implication that there has been no change in the affairs of the County since the date hereof. The County makes no representation regarding the accuracy or completeness of the information provided in Appendix G—Book-Entry System, which has been furnished by DTC. This Official Statement is not to be construed as a contract or agreement between the County and purchasers or Owners of any of the Bonds. The public offering prices set forth on page i of this Official Statement may be changed from time to time by the initial purchaser of the Bonds (the “Purchaser”). The Purchaser of the Bonds may offer and sell the Bonds to certain dealers, unit investment trusts, or money market funds at prices lower than the public offering prices set forth on page i of this Official Statement. Certain statements contained in this Official Statement, including the appendices, reflect not historical facts but forecasts and “forward-looking statements.” No assurance can be given that the future results discussed herein will be achieved, and actual results may differ materially from the forecasts described herein. In this respect, the words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe,” and similar expressions are intended to identify forward-looking statements. All projections, forecasts, assumptions, and other forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth in this Official Statement. The website of the County or any County department or agency is not part of this Official Statement, and investors should not rely on information presented on the County’s website, or any other website referenced herein, in determining whether to purchase the Bonds. Information appearing on any such website is not incorporated by reference in this Official Statement. CUSIP is a registered trademark of the American Bankers Association. The CUSIP numbers herein are provided by CUSIP Global Services, which is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. CUSIP numbers are provided for convenience of reference only. CUSIP numbers are subject to change. The County takes no responsibility for the accuracy of such CUSIP numbers. This Preliminary Official Statement is in a form deemed final as of its date by the County for purposes of paragraph (b)(1) of Securities and Exchange Commission Rule 15c2-12, except for information permitted to be omitted by Rule 15c2-12. MATURITY SCHEDULE $100,345,000(1) KING COUNTY, WASHINGTON LIMITED TAX GENERAL OBLIGATION BONDS (PAYABLE FROM SEWER REVENUES), 2019 Due January 1 Amounts (1) Interest Rates Yields Prices CUSIP Numbers 2029 $ 9,435,000 2030 18,445,000 (2) 2031 8,715,000 (2) 2032 12,375,000 (2) 2033 11,795,000 (2) 2034 12,400,000 (2) 2035 - 2036 8,620,000 (2) 2037 9,055,000 (2) (2) 2038 9,505,000 (1) Preliminary, subject to change. (2) These amounts will constitute principal maturities of the Bonds unless Term Bonds are specified by the successful bidder, in which case these amounts may constitute mandatory sinking fund redemptions of the Term Bonds.