The New York and Presbyterian Hospital and References to “Bonds”, “Securities” Or Notes Mean the Series 2016 Bonds Offered Hereby
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PRELIMINARY OFFERING MEMORANDUM DATED JUNE 16, 2016 NEW ISSUE – BOOK-ENTRY ONLY $__________ THE NEW YORK AND PRESBYTERIAN HOSPITAL Taxable Bonds, Series 2016 _____% Bonds due ______, 20__ Issue price: _____%, CUSIP† _________ Interest Payable February 1 and August 1 Dated: Date of Delivery The New York and Presbyterian Hospital Taxable Bonds, Series 2016 (the “Bonds” or the “Series 2016 Bonds”) will be issued pursuant to the terms of an Indenture of Trust, dated as of June 1, 2016 (the “Bond Indenture”), by and between The New York and Presbyterian Hospital (the “Hospital”) and TD Bank, N.A., as bond trustee (the “Bond Trustee”). The proceeds of the Bonds will be used by the Hospital for eligible corporate purposes of the Hospital and its affiliates and to pay the costs of issuance of the Bonds. The Bonds will be issued in fully registered form in denominations of $1,000 and any integral multiple thereof and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases will be made in book-entry form only, in principal amounts of $1,000 and any integral multiple thereof. Purchasers of the Bonds will not receive physical certificates (except under certain circumstances described in the Bond Indenture) representing their ownership interests in the Bonds purchased. Interest on the Bonds will be payable on February 1 and August 1 of each year, commencing on February 1, 2017. So long as the Bonds are held by DTC, the principal or Make-Whole Redemption Price (as defined herein) of and interest on the Bonds will be payable by wire transfer to DTC, which in turn is required to remit such principal or Make-Whole Redemption Price and interest to the DTC Participants for subsequent disbursement to the Beneficial Owners of the Bonds, as more fully described in “BOOK-ENTRY ONLY SYSTEM” herein. The Bonds are subject to optional redemption in whole or in part prior to their stated maturity as described herein. See “THE BONDS – Redemption” herein. Interest on and gain, if any, on the sale of the Bonds are not excludable from gross income for federal, state or local income tax purposes. See “CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS” herein. The obligations of Hospital to make payments to the Bond Trustee under the Bond Indenture are evidenced by an obligation (“Obligation No. 2”) issued under a Master Trust Indenture (the “Master Indenture”), dated as of January 1, 2015, between Hospital and TD Bank, N.A., as master trustee (in such capacity, the “Master Trustee”), and the Supplemental Master Indenture for Obligation No. 2, dated as of June 1, 2016 (the “Supplemental Indenture”), by and between the Hospital and the Master Trustee. Obligation No. 2 will be an Obligation of the Obligated Group payable under the Master Indenture on a parity basis with all other Obligations issued thereunder. See “SOURCES OF PAYMENT FOR THE BONDS” and APPENDIX E – “FORMS OF THE MASTER INDENTURE AND SUPPLEMENTAL INDENTURE” attached hereto. The Hospital is not restricted by the Bond Indenture or the Master Indenture from incurring additional indebtedness and may grant liens on its property subject to the limitations contained in the Bond Indenture and the Master Indenture. The Hospital has existing debt, including the FHA-Insured Indebtedness and the Lower Manhattan Indebtedness, which is secured by, among other assets, a pledge of revenues and accounts of the Hospital and mortgages on certain of the Hospital’s property. See “Sources of Payment for the Bonds—Outstanding Indebtedness”, “Bondholders’ Risks” and APPENDIX D – “FORM OF BOND INDENTURE – Authorization of Bonds” and “– Compliance with Bond Indenture” attached hereto. The Bonds are offered when, as and if issued by the Hospital and received by the Underwriter, subject prior sale, withdrawal or modification of the offer without notice and subject to the approval of their legality and certain other matters by Hospital’s counsel, Dennett Law Offices, P.C., Great Neck, New York and Stroock & Stroock & Lavan LLP, New York, New York. In addition, certain legal matters will be passed upon for the Underwriter by its counsel, Winston & Strawn LLP, New York, New York. It is expected that the Bonds will be available for delivery to DTC in New York, New York or to its custodial agent on or about June __, 2016. Goldman, Sachs & Co. June __, 2016 † CUSIP Copyright, American Bankers Association. CUSIP data is provided by Standard & Poor’s CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. CUSIP numbers are provided for convenience of reference only. Neither the Hospital, the Bond Trustee nor the Underwriter assumes any responsibility for the accuracy of such numbers. This Preliminary Offering Memorandum and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Offering Memorandum constitute an offer to sell or the solicitation of an solicitation the or sell to Preliminarythis offer shall an circumstances constitute Under no Memorandum Offering amendment. or to completion subject are herein contained This Preliminaryinformation the and Memorandum Offering of such jurisdiction. under the securities laws exemption prior qualification or to registration, be unlawful solicitation or sale would sale of these securities jurisdiction nor shall there be any in any in which such offer, to buy, offer [THIS PAGE INTENTIONALLY LEFT BLANK] TABLE OF CONTENTS Page GENERAL INFORMATION ........................................................................................................................ i SUMMARY OF THE OFFERING.............................................................................................................. vi INTRODUCTION ........................................................................................................................................ 1 Purpose of the Bonds and the Plan of Finance ................................................................................ 1 The Hospital ..................................................................................................................................... 1 The Bonds ........................................................................................................................................ 3 Redemption ...................................................................................................................................... 5 Book-Entry Only System ................................................................................................................. 5 Certain Information Related to this Offering Memorandum ........................................................... 5 SOURCES OF PAYMENT FOR THE BONDS .......................................................................................... 6 Bond Indenture ................................................................................................................................ 6 Master Indenture, Supplemental Indenture and Obligation No. 2 ................................................... 7 Outstanding Indebtedness ................................................................................................................ 8 ESTIMATED DEBT SERVICE REQUIREMENTS ON THE SERIES 2016 BONDS AND CERTAIN OTHER INDEBTEDNESS ........................................................................................................................ 11 THE BONDS .............................................................................................................................................. 12 Description of the Bonds ............................................................................................................... 12 Redemption .................................................................................................................................... 12 Transfer of Bonds .......................................................................................................................... 15 Exchange of Bonds ........................................................................................................................ 15 Bond Register ................................................................................................................................ 16 Acceleration ................................................................................................................................... 16 BOOK-ENTRY ONLY SYSTEM .............................................................................................................. 16 BONDHOLDERS’ RISKS ......................................................................................................................... 19 CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS ................................... 50 ERISA CONSIDERATIONS ..................................................................................................................... 55 FINANCIAL ADVISOR ........................................................................................................................... 55 UNDERWRITING ..................................................................................................................................... 55 CONTINUING DISCLOSURE .................................................................................................................. 56 APPROVAL OF LEGALITY ....................................................................................................................