Fitch: “AA+” S&P
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PRELIMINARY OFFICIAL STATEMENT Dated August 15, 2018 NEW ISSUE - Book-Entry-Only Ratings: Fitch: “AA+” S&P: “AA+” (See “OTHER INFORMATION – Ratings” herein.) In the opinion of Bond Counsel to the City, interest on the Bonds (defined below) will be excludable from the gross income of the owners thereof for federal income tax purposes under statutes, regulations, published rulings and court decisions existing on nor may offers may to buy be accepted prior nor itation of an offer to buy nor shall there nor shall buy offer to itation of an the date thereof, subject to the matters described under “TAX MATTERS” herein. s laws of any such jurisdiction. $4,000,000* CITY OF MCALLEN, TEXAS (Hidalgo County) GENERAL OBLIGATION BONDS, SERIES 2018 Dated Date: September 1, 2018 Due: February 15, as shown on inside cover PAYMENT TERMS . Interest on the $4,000,000* City of McAllen, Texas General Obligation Bonds, Series 2018 (the "Bonds") These securities not be sold may will accrue from September 1, 2018 (the "Dated Date"), will be payable February 15 and August 15 of each year commencing t constitute an offer to sell or the solic t constitute an August 15, 2019, and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. The definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to ration or qualification under the securitie the book-entry-only system described herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or integral multiples thereof. No physical delivery of the Bonds will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Bonds. See "THE BONDS - Book-Entry-Only System" herein. The initial Paying Agent/Registrar is ZB, National Association, dba Amegy Bank, Houston, Texas. See "THE BONDS - Paying Agent/Registrar". AUTHORITY FOR ISSUANCE AND SECURITY FOR THE BONDS . The Bonds are issued pursuant to the Constitution and general laws of the State of Texas, (the "State") including particularly, Texas Government Code, Chapters 1251 and 1331, as amended, uld be unlawful prior to regist and an election held on May 5, 2018, and are direct bonds of the City of McAllen, Texas (the "City") payable from a continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law, all as provided in the ordinance shall this Preliminary Official Statemen authorizing the Bonds (the "Bond Ordinance") (see "THE BONDS - Authority for Issuance of the Bonds” and "- Security and Source of Payment for the Bonds"). PURPOSE FOR THE BONDS . Proceeds from the sale of the Bonds will be used for the purpose of (1) constructing drainage improvements, together with related street and sidewalk improvements, in the City; (2) acquiring, constructing, and installing traffic and street signalization equipment and improvements, together with related street and lighting improvements, in the City; d herein are subject to completion or amendment without notice. amendment or subject to completion are herein d and (3) to pay the costs associated with the issuance of the Bonds. ch offer, solicitation or sale wo CUSIP PREFIX: 579083 MATURITY SCHEDULES & 9 DIGIT CUSIP See Schedules on Page 2 LEGALITY . The Bonds are offered for delivery when, as and if issued and received by the Initial Purchaser and subject to the ered in final form. Under no circumstances ered in final form. approving opinion of the Attorney General of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Bond Counsel, San Antonio, Texas (see APPENDIX C, "Form of Bond Counsel's Opinion"). DATE OF DELIVERY . It is expected that the Bonds will be available for delivery through The Depository Trust Company on Thursday, September 13, 2018. BIDS DUE MONDAY, AUGUST 27, 2018, AT 11:00 AM, CDT ________________ * Preliminary, subject to change. This Preliminary Official Statement and the information containe Statement and the information Official Preliminary This to the time Official Statement is deliv be any sale of these securities in any jurisdiction in which su MATURITY SCHEDULE FOR THE BONDS* CUSIP Prefix: 579083 (1) Initial Initial Stated Price Stated Price Principal M aturity Interest or CUSIP Principal M aturity Interest or CUSIP Amount (February 15) Rate Yield Number(1) Amount (February 15) Rate Yield Number(1) $ 115,000 2020$ 160,000 2032 115,000 2021 170,000 2033 120,000 2022 175,000 2034 125,000 2023 180,000 2035 130,000 2024 185,000 2036 130,000 2025 195,000 2037 135,000 2026 200,000 2038 140,000 2027 210,000 2039 145,000 2028 215,000 2040 150,000 2029 225,000 2041 155,000 2030 230,000 2042 155,000 2031 240,000 2043 (Accrued Interest from the Dated Date to be Added) _______________ (1) CUSIP numbers are included solely for the convenience of owners of the Bonds. CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by S&P Capital IQ on behalf of The American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. None of the City, the Initial Purchaser, or the Financial Advisor is responsible for the selection or correctness of the CUSIP numbers set forth herein OPTIONAL REDEMPTION FOR THE BONDS. The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2028, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption (see "THE BONDS - Optional Redemption for the Bonds"). Additionally, the Initial Purchaser may elect to group two or more consecutive maturities of the Bonds into one or more term Bonds (the “Term Bonds”) which Term Bonds would be subject to mandatory sinking fund redemption. [The Remainder of this Page Intentionally Left Blank] 2 For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission (the "Rule"), this Preliminary Official Statement constitutes an official statement of the City with respect to the Bonds that has been "deemed final" by the City as of its date except for the omission of no more than the information permitted by the Rule. This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction to any person to whom it is unlawful to make such offer, solicitation or sale. No dealer, broker, salesperson or other person has been authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon. The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as a representation, promise or guarantee of the Financial Advisor. This Official Statement includes descriptions and summaries of certain events, matters and documents. Such descriptions and summaries do not purport to be complete and all such descriptions, summaries and references thereto are qualified in their entirety by reference to this Official Statement in its entirety and to each such document, copies of which may be obtained from the Financial Advisor. Any statements made in this Official Statement or the appendices hereto involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of such opinions or estimates will be realized. The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described herein. See "OTHER INFORMATION – Continuing Disclosure of Information" for a description of the City's undertaking to provide certain information on a continuing basis. NEITHER THE CITY NOR ITS FINANCIAL ADVISOR, OR THE INITIAL PURCHASER MAKES ANY REPRESENTATION OR WARRANTY WITH RESPECT TO THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT REGARDING THE DEPOSITORY TRUST COMPANY OR ITS BOOK-ENTRY ONLY SYSTEM. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACT. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF SECURITIES LAW OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED, IF ANY, AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES, IF ANY, CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. THE BONDS HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS "FORWARD-LOOKING" STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE DIFFERENT FROM FUTURE RESULTS, PERFORMANCE AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.