CHICAGO PARK DISTRICT $8,000,000* Generalobligation B
Total Page：16
File Type：pdf, Size：1020Kb
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 20, 2016 NEW ISSUES – FULL BOOK-ENTRY S&P: AA+/stable outlook Fitch: AA-/stable outlook Kroll: AA/stable outlook (See “RATINGS” herein) In the opinion of Katten Muchin Rosenman LLP and Tristan & Cervantes, Co-Bond Counsel, under existing law, if there is continuing compliance with applicable requirements of the Internal Revenue Code of 1986, interest on the Bonds will not be includable in gross income for federal income tax purposes. Interest on the Bonds is not required to be included as an item of tax preference for purposes of computing individual or corporate “alternative minimum taxable income.” However, interest on the Bonds is includable in corporate earnings and profits and therefore must be taken into account when computing corporate alternative minimum taxable income for purposes of the corporate alternative minimum tax. Interest on the Bonds is not exempt from Illinois income taxes. See “TAX MATTERS” herein. $119,000,000* CHICAGO PARK DISTRICT $75,000,000* General Obligation Limited Tax Park Bonds, Series 2016A $8,000,000* General Obligation Limited Tax Refunding Bonds, Series 2016B $17,000,000* General Obligation Limited Tax Refunding Bonds, Series 2016C $4,000,000* General Obligation Unlimited Tax Refunding Bonds, Series 2016D (Personal Property Replacement Tax Alternate Revenue Source) $15,000,000* General Obligation Unlimited Tax Refunding Bonds, Series 2016E (Special Recreation Activity Alternate Revenue Source) Dated: Date of Issuance Due: January 1 and November 15, as shown on inside cover pages The Chicago Park District (the “District”) is issuing $75,000,000* of its General Obligation Limited Tax Park Bonds, Series 2016A (the “Series 2016A Limited Tax Bonds”); $8,000,000* of its General Obligation Limited Tax Refunding Bonds, Series 2016B (the “Series 2016B Limited Tax Bonds”), $17,000,000* of its General Obligation Limited Tax Refunding Bonds, Series 2016C (the “Series 2016C Limited Tax Bonds” and, collectively with the Series 2016A Limited Tax Bonds and the Series 2016B Limited Tax Bonds, the “Series 2016 Limited Tax Bonds”), $4,000,000* of its General Obligation Unlimited Tax Refunding Bonds, Series 2016D (Personal Property Replacement Tax Alternate Revenue Source) (the “Series 2016D Unlimited Tax Bonds”) and $15,000,000* of its General Obligation Unlimited Tax Refunding Bonds, Series 2016E (Special Recreation Activity Alternate Revenue Source) (the “Series 2016E Unlimited Tax Bonds” and, together with the Series 2016D Unlimited Tax Bonds, the “Series 2016 Unlimited Tax Bonds,” and collectively with the Series 2016 Limited Tax Bonds, the “Bonds”). The Bonds will be issued in fully registered form in denominations of $5,000 or any integral multiple thereof under a book-entry only system operated by The Depository Trust Company, New York, New York (“DTC”), as described herein. Purchasers will not receive physical delivery of Bond certificates. Principal of and interest on the Bonds will be payable by Amalgamated Bank of Chicago, Chicago, Illinois, as bond registrar and paying agent. Interest payments on the Series 2016A Limited Tax Bonds will commence on July 1, 2017 and interest payments on the Series 2016B and Series 2016C Limited Tax Bonds and Series 2016D Unlimited Tax Bonds will commence on January 1, 2017. Interest payments on the Series 2016 Limited Tax Bonds and the Series 2016D Unlimited Tax Bonds will be payable semiannually thereafter, on each January 1 and July 1. Interest payments on the Series 2016E Unlimited Tax Bonds will commence on May 15, 2017, and will be payable semiannually thereafter, on each November 15 and May 15. Interest payments on the Bonds will be payable to DTC for remittance to DTC’s participants and delivery thereof to the beneficial owners of the Bonds as described under the caption “THE BONDS – Bond Owner Payments.” Each series of the Bonds is a direct and general obligation of the District and the full faith and credit of the District has been irrevocably pledged to the punctual payment of the principal of and interest on the Bonds. The District is authorized to levy and collect, and has levied, a direct annual tax in an amount equal to the principal of and interest to become due on the Bonds during each annual levy period. With respect to the Series 2016 Limited Tax Bonds, no limit exists on the rate of such tax that may be extended in a levy year to pay the Series 2016 Limited Tax Bonds, but the dollar amount of such tax is limited by the provisions of the Property Tax Extension Limitation Law, as amended. The direct annual tax levied with respect to the Series 2016 Unlimited Tax Bonds is without limitation as to rate or amount. In addition to such tax levy, the District has provided that the Series 2016D Unlimited Tax Bonds will be payable from the Personal Property Tax Replacement Fund of the State of Illinois and the Series 2016E Unlimited Tax Bonds will be payable from amounts paid to the District from the Special Recreation Activity Tax as more fully described in the Official Statement. See “SECURITY FOR THE BONDS.” The Bonds will mature on the dates and in the amounts and bear interest as shown on the inside cover pages. The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described herein. See “THE BONDS – Redemption of Bonds.” Proceeds of the Bonds will be used to (i) finance a portion of the cost of building, maintaining and improving parks within the District, as part of the District’s Capital Improvement Plan (as defined herein), including the reimbursement of costs already incurred by the District and the repayment of draws on existing bond anticipation notes, which may be outstanding in a maximum principal amount of $40,000,000 issued to fund a portion of the District’s Capital Improvement Program; (ii) refund all or a portion of certain maturities of the District’s outstanding general obligation bonds (defined in this Official Statement as the Refunded“ Bonds”); (iii) finance capitalized interest on the Series 2016A Limited Tax Bonds; and (iv) pay for the costs of issuance of the Bonds and the refunding of the Refunded Bonds. See “PLAN OF FINANCE” herein for a description of the purposes of each series of Bonds and the plan of finance. The Bonds are offered when, as and if issued, subject to the approving legal opinions of Katten Muchin Rosenman LLP, Chicago, Illinois, and Tristan & Cervantes, Chicago, Illinois, Co-Bond Counsel, in substantially the forms attached to this Official Statement as Appendix E. Certain legal matters will be passed on for the District by Timothy M. King, General Counsel, and by Hardwick Law Firm, LLC, Chicago, Illinois, as Issuer’s and Disclosure Counsel, and for the Underwriters by their Counsel, Del Galdo Law Group, LLC, Berwyn, Illinois. Delivery of the Bonds through the facilities of DTC is expected on or about _______, 2016. CABRERA CAPITAL MARKETS, LLC PNC CAPITAL MARKETS LLC Blaylock Beal Van, LLC J.J.B. Hilliard, W.L. Lyons, LLC North South Capital LLC Dated: October ___, 2016 THIS PRELIMINARY OFFICIAL STATEMENT AND THE INFORMATION CONTAINED HEREIN ARE SUBJECT TO COMPLETION AND AMENDMENT IN A FINAL OFFICIAL STATEMENT. Under no circumstances shall this Preliminaryshall Under nocircumstances STATEMENT. OFFICIAL FINAL IN A AND AMENDMENT COMPLETION TO ARE SUBJECT HEREIN CONTAINED INFORMATION THE AND STATEMENT OFFICIAL THIS PRELIMINARY prior or to registration would be unlawful solicitation or sale jurisdiction in any in which such offer, hereby, sale of the securities and there shall not be any offered buy, to to sell or the solicitation of an offer Official Statement constitute an offer of such jurisdiction.qualification under the securities laws * Preliminary, subject to change. MATURITIES, AMOUNTS, INTEREST RATES, YIELDS, PRICES AND CUSIP NUMBERS† $119,000,000* CHICAGO PARK DISTRICT $75,000,000* General Obligation Limited Tax Park Bonds, Series 2016A Maturity Principal Interest (January 1) Amount Rate Yield Price CUSIP† $ % % $__,___,000 ____% Term Bonds due January 1, 20__, Yield: ___%, Price: __, CUISP† _______ $__,___,000 ____% Term Bonds due January 1, 20__, Yield: ___%, Price: __, CUISP† _______ $8,000,000* General Obligation Limited Tax Refunding Bonds, Series 2016B Maturity Principal Interest (January 1) Amount Rate Yield Price CUSIP† $ % % $17,000,000* General Obligation Limited Tax Refunding Bonds, Series 2016C Maturity Principal Interest (January 1) Amount Rate Yield Price CUSIP† $ % % *Preliminary, subject to change. † Copyright 2016, American Bankers Association. CUSIP data herein are provided by S&P Global Ratings, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. The CUSIP numbers listed are being provided solely for the convenience of the bondholders only at the time of issuance of the Bonds and the District does not make any representation with respect to such numbers or undertake any responsibility for their accuracy now or at any time in the future. The CUSIP number for a specific maturity is 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 such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds. $4,000,000* General Obligation Unlimited Tax Refunding Bonds, Series 2016D (Personal Property Replacement Tax Alternate Revenue Source) Maturity Principal Interest (January 1) Amount Rate Yield Price CUSIP† $ % % $15,000,000* General Obligation Unlimited Tax Refunding Bonds, Series 2016E (Special Recreation Activity Alternate Revenue Source) Maturity (November Principal Interest 15) Amount Rate Yield Price CUSIP† $ % % *Preliminary, subject to change. † Copyright 2016, American Bankers Association. CUSIP data herein are provided by S&P Global Ratings, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc.