Colorado Educational and Cultural Facilities Authority
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PRELIMINARY OFFICIAL STATEMENT DATED MAY 11, 2017 NEW ISSUE RATINGS: Moody’s: “A1” FULL BOOK ENTRY Fitch: “AA-” See “RATINGS” In the opinion of Sherman & Howard, L.L.C., assuming continuous compliance with certain covenants described herein, interest on the Series 2017A Bonds is excluded from gross income under federal income tax laws pursuant to Section 103 of the Internal Revenue Code of 1986, as amended to the date of delivery of the Series 2017A Bonds (the “Tax Code”), and interest on the Series 2017A Bonds is excluded from alternative minimum taxable income as defined in Section 55(b)(2) of the Tax Code except that such interest is required to be included in calculating the “adjusted current earnings” adjustment applicable to corporations for purposes of computing the alternative minimum taxable income of corporations. Interest on the Series 2017B Bonds is included in gross income for federal income tax purposes pursuant to the Tax Code. The Bonds, the transfer thereof, and the income therefrom are exempt from all taxation and assessments in the State of Colorado. See “TAX MATTERS” herein. COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY (UNIVERSITY OF DENVER PROJECT) $123,835,000* $24,295,000* REVENUE BONDS REVENUE BONDS TAX-EXEMPT SERIES 2017A TAXABLE SERIES 2017B Dated: Date of Delivery Due: March 1, as shown herein The Bonds are issued as fully registered bonds in denominations of $5,000, or any integral multiple thereof. The Bonds initially will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), securities depository for the Bonds. Purchases of the Bonds are to be made in book-entry form only. Purchasers will not receive certificates representing their beneficial ownership interest in the Bonds. See “THE BONDS--Book-Entry Only System.” The Bonds will bear interest at the rates set forth on the inside front cover hereof, payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2017, by check or draft mailed to Cede & Co. as the registered owner of the Bonds. The principal and premium, if any, of the Bonds shall be payable upon presentation and surrender thereof at UMB Bank, n.a., Denver, Colorado (the “Trustee”), or its successor as trustee. See “THE BONDS.” The proceeds from the sale of the Bonds will be loaned to Colorado Seminary, more commonly known as the University of Denver (the “University”). The proceeds of the Bonds will be used to: (i) finance a portion of the construction, improvement, renovation, and equipping of certain campus improvements including a freshman residential dormitory, the campus career center, a substantial demolition, renovation and expansion of the student center to become a community commons, and other campus improvements; (ii) pay certain capitalized interest on the Bonds; and (iii) pay certain costs associated with the issuance of the Bonds. See “SOURCES AND USES OF FUNDS.” The Bonds are subject to optional, extraordinary and mandatory sinking fund redemption prior to maturity as set forth in this Official Statement. See “THE BONDS – Redemption Provisions.” The Bonds constitute special, limited obligations of the Authority, and are payable solely from payments, revenues and other amounts derived by the Authority pursuant to a Loan Agreement between the Authority and the University. The Bonds are not general obligations of the Authority. The Bonds and the interest thereon shall never constitute the general obligation debt or indebtedness of the Authority, the State of Colorado (the “State”) or any political subdivision thereof within the meaning of any provision of the Constitution and laws of the State and shall not constitute or give rise to a pecuniary liability, or a charge against the general credit or taxing powers of the Authority or the State. The Authority is not authorized to levy taxes or assessments. This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision, giving particular attention to the section entitled “INVESTMENT CONSIDERATIONS.” The Bonds are offered when, as, and if issued by the Authority and accepted by the Underwriter subject to the approval of Sherman & Howard L.L.C., as bond counsel. Sherman & Howard L.L.C. also has acted as special counsel to the University in connection with the preparation of this Official Statement. Certain legal matters will be passed upon for the Authority by Sherman & Howard L.L.C, general counsel to the Authority. Certain legal matters will be passed upon for the University by its counsel, Hoffman, Crews, Nies, Waggener & Foster LLP. North Slope Capital Advisors, Denver, Colorado is acting as municipal advisor to the University and PFM Financial Advisors LLC, Denver, Colorado is acting as the financial advisor to the Authority. Kutak Rock LLP is acting as counsel to the Underwriter. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about June 27, 2017. RBC Capital Markets Wells Fargo Securities Official Statement dated May __, 2017. This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final in prior be accepted buy delivered is Statement Official time the the to to offers may nor sold be not securities These may This Preliminary amendment. or completion subject to are herein contained information the and Statement Official would solicitation or sale sale of these securities jurisdictionbuy nor shall there be any in any in which such offer, to Under no circumstances shall this Preliminary to sell or a solicitation of an offer Official Statement constitute an offer form. such jurisdiction. prior of any or qualification under the securities to registration be unlawful laws * Preliminary; subject to change. MATURITY SCHEDULES* SERIES 2017A TAX-EXEMPT BONDS Maturity Maturity Date Principal Interest Date Principal Interest (March 1) Amount Rate Yield CUSIP1© (March 1) Amount Rate Yield CUSIP1© 2031 $4,815,000 % % 2035 $5,850,000 % % 2032 5,055,000 2036 6,145,000 2033 5,310,000 2037 6,450,000 2034 5,575,000 $21,360,000* ___% Term Bond due March 1, 2040 Price: _____% CUSIP: [______] 1© $24,725,000* ___% Term Bond due March 1, 2043 Price: _____% CUSIP: [______] 1© $38,550,000* ___% Term Bond due March 1, 2047 Price: _____% CUSIP: [______] 1© SERIES 2017B TAXABLE BONDS Maturity Maturity Date Principal Interest Date Principal Interest (March 1) Amount Rate Yield CUSIP1© (March 1) Amount Rate Yield CUSIP1© 2021 $3,685,000 % % 2026 $2,120,000 % % 2022 1,625,000 2027 2,285,000 2023 1,755,000 2028 2,910,000 2024 1,815,000 2029 3,015,000 2025 1,960,000 2030 3,125,000 * Preliminary; subject to change. © 2017, CUSIP Global Services. CUSIP® is a registered trademark of the American Bankers Association. The CUSIP data herein is provided by CUSIP Global Services which is managed on behalf of the American Bankers Association by S&P Capital IQ. The CUSIP numbers are not intended to create a database and do not serve in any way as a substitute for the CUSIP Service. 1 The Authority and University take no responsibility for the accuracy of the CUSIP numbers, which are included solely for the convenience of owners of the Bonds. USE OF INFORMATION IN THIS OFFICIAL STATEMENT This Official Statement, which includes the cover page, the inside cover page and the appendices, does not constitute an offer to sell or the solicitation of an offer to buy any of the Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation, or sale. No dealer, salesperson, or other person has been authorized to give any information or to make any representations other than those contained in this Official Statement in connection with the offering of the Bonds, and if given or made, such information or representations must not be relied upon as having been authorized by the Authority or the University. The University and the Authority each maintain an internet website; however, the information presented there is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds. The information set forth in this Official Statement has been obtained from the University and from the sources referenced throughout this Official Statement, which the University believes to be reliable. No representation is made by the University, however, as to the accuracy or completeness of information provided from sources other than the University. This Official Statement contains, in part, estimates and matters of opinion which are not intended as statements of fact, and no representation or warranty is made as to the correctness of such estimates and opinions, or that they will be realized. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information, estimates, and expressions of opinion contained in this Official Statement 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 University, or in the information, estimates, or opinions set forth herein, since the date of this Official Statement.