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NEW ISSUE – BOOK-ENTRY-ONLY RATINGS: See “RATINGS” herein In the opinion of Cozen O’Connor, Bond Counsel to the Authority (as hereinafter defined), interest on the 2007 Notes is includable in the gross income of the holder thereof for federal income taxation under existing statutes, regulations, rulings and court decisions. Under the laws of the State of New Jersey, interest on the 2007 Notes and any gain on the sale thereof is not includable as gross income under the New Jersey Gross Income Tax Act. For a more complete discussion, see “TAX MATTERS” herein. $22,390,000 SOUTH JERSEY TRANSPORTATION AUTHORITY Taxable Subordinated Notes, Series 2007 Interest Rate: 5.50% Per Annum Yield: 5.60% Dated: Date of Delivery Due: January 1, 2010 The South Jersey Transportation Authority (“Authority”) is issuing its $22,390,000 Taxable Subordinated Notes, Series 2007 (“2007 Notes”) pursuant to the South Jersey Transportation Authority Act, as amended and supplemented (“Act”), the Authority’s Second Amended and Restated Resolution Authorizing Revenue Bonds and Other Obligations, adopted on April 19, 2005, as amended as of May 11, 2005 by a Certificate of the Acting Executive Director in accordance with Section 12.13 thereof (collectively, the “Resolution”), and the Authority’s 2007 Subordinated Note Resolution, adopted on June 19, 2007, and a Series Certificate of the Authority, dated the date of sale of the 2007 Notes, making certain determinations in connection therewith (collectively, the “2007 Note Resolution”). The 2007 Notes are issuable as fully registered notes in book-entry form 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 2007 Notes. Purchases of beneficial ownership interests in the 2007 Notes may be made only through the DTC book-entry system and may be made only in denominations of $5,000 or any integral multiple thereof. Beneficial Owners (as defined herein) of the 2007 Notes will not receive certificates representing their interests in the 2007 Notes. The 2007 Notes will be dated the date of initial issuance and delivery thereof, will bear interest at a rate of five and fifty one hundredths percent (5.50%) per annum, calculated on the basis of a year of 360 days consisting of twelve 30-day months. Interest on the 2007 Notes is payable initially on January 1, 2008 and semi-annually thereafter on July 1 and January 1 until maturity or earlier redemption or acceleration; provided, however, that the 2007 Notes may not be accelerated unless the Bonds issued under the Resolution are accelerated. The principal of the 2007 Notes will be payable in full on January 1, 2010 (“Maturity Date”), unless the 2007 Notes become due and payable earlier upon redemption or acceleration prior to maturity; provided, however, that the 2007 Notes may not be accelerated unless the Bonds issued under the Resolution are accelerated. So long as Cede & Co. is the registered owner of the 2007 Notes, payments of principal of and interest on the 2007 Notes will be made directly by The Bank of New York, West Paterson, New Jersey, as paying agent (“Paying Agent”) under the 2007 Note Resolution, as described herein. See “THE 2007 NOTES – Book-Entry-Only System” herein. The 2007 Notes are subject to optional redemption, without premium, priority to maturity. See “THE 2007 NOTES – Redemption” herein. THE 2007 NOTES ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM THE PROPERTY PLEDGED TO THE PAYMENT OF THE 2007 NOTES AS CONTAINED IN THE 2007 NOTE RESOLUTION, AND NEITHER THE STATE OF NEW JERSEY NOR ANY INSTRUMENTALITY THEREOF, OTHER THAN THE AUTHORITY (TO THE LIMITED EXTENT SET FORTH IN THE 2007 NOTE RESOLUTION), IS OBLIGATED TO PAY THE 2007 NOTES, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF NEW JERSEY OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2007 NOTES. THE AUTHORITY HAS NO TAXING POWER. The proceeds of the 2007 Notes will be used to finance the costs of one or more capital projects (collectively, the “2007 Capital Projects”) and paying the costs of issuance of, and capitalized interest on a portion of the 2007 Notes. See “PLAN OF FINANCING” herein. The 2007 Notes are subordinated in all respects to the provisions of the Resolution and the lien and pledge created by the Resolution in favor of the Bonds issued thereunder. All principal of and interest on the Bonds issued under the Resolution must be paid before any further payment of principal of or interest on the 2007 Notes if an event of default under the Resolution occurs which results in non-payment or acceleration of such Bonds, or upon the insolvency of the Authority. The scheduled payment of the principal of and interest on the 2007 Notes when due will be guaranteed under a municipal bond insurance policy (“Policy”) to be issued concurrently with the delivery of the 2007 Notes by Financial Security Assurance Inc. (“Financial Security” or “Bond Insurer”). See “BOND INSURANCE” herein. Investors must read this entire Official Statement, including the Appendices hereto, to obtain information essential to the making of an informed investment decision. This cover page contains information for quick reference only. It is not a summary of this issue. The 2007 Notes are offered, when, as and if issued by the Authority, subject to prior sale, withdrawal or modification of the offer without notice, and subject to the approval of legality by Cozen O’Connor, Newark, New Jersey, Bond Counsel. Certain legal matters will be passed upon for the Authority by its General Counsel, Florio Perrucci Steinhardt & Fader, L.L.C., Phillipsburg, New Jersey, and for the Underwriter by Parker McCay P.A., Marlton, New Jersey. It is expected that delivery of the 2007 Notes to DTC in New York, New York or its agent, will take place on or about July 12, 2007. Citi Dated: July 5, 2007 SOUTH JERSEY TRANSPORTATION AUTHORITY Farley Service Plaza P.O. Box 351 Hammonton, New Jersey 08037 (609) 965-6060 MEMBERS OF THE AUTHORITY Kris Kolluri, Esq., Chairman Mark Summerville, Vice-Chairman Ex-Officio, NJDOT, Commissioner Jeffrey A. April, Esq. Louis Toscano Ernest Coursey Virginia S. Bauer, Ex-Officio, NJDOC Secretary/CEO James M. Gaymon, Jr. SENIOR STAFF Bart R. Mueller Kathleen C. Aufschneider, PE, PP Executive Director Deputy Executive Director Director of Policy and Planning Dennis Culnan, Jr. Chief of Staff Wade Lawson Deputy Executive Director Kathleen M. Sharman, CPA Director of Tourist Services Treasurer/Director of Finance Sharon Gordon Thomas Rafter Director of Communications & Marketing Airport Director Carole Miller Samuel L. Donelson, P.E. Director of Parking/Transportation Services Director of Engineering and Expressway Operations/Chief Engineer Joel Falk Director of Information and Technologies ADVISORS Florio Perrucci Steinhardt & Fader, L.L.C. Ford, Scott, Seidenburg & Kennedy, LLC General Counsel Independent Certified Public Accountants Cozen O'Connor Wilbur Smith Associates Bond Counsel Traffic Engineering Consultants Acacia Financial Group, Inc. Financial Advisor No dealer, broker, salesman, or any other person has been authorized to give any information or to make any representations with respect to the 2007 Notes, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the 2007 Notes by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. 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 guaranty the accuracy or completeness of such information. The information in this Official Statement concerning The Depository Trust Company, New York, New York ("DTC") and DTC's book-entry-only system has been obtained from DTC, and the Authority and the Underwriter take no responsibility for the accuracy thereof. Such information has not been independently verified by the Authority or the Underwriter, and neither the Authority nor the Underwriter make any representation as to the accuracy or completeness of such information. Other than with respect to information concerning Financial Security Assurance Inc. ("Financial Security" or "Bond Insurer") contained under the caption "BOND INSURANCE" herein and in APPENDIX G – "Specimen Municipal Bond Insurance Policy" hereto, none of the information in this Official Statement has been supplied or verified by Financial Security and Financial Security makes no representation or warranty, express or implied, as to (i) the accuracy or completeness of such information; (ii) the validity of the 2007 Notes; or (iii) the taxable status of the interest on the 2007 Notes. Neither the Authority nor the Underwriter have confirmed the accuracy or completeness of the information relating to Financial Security or the bond insurance policy to be issued by Financial Security insuring the scheduled payment of the principal of and interest on the 2007 Notes ("Policy") when due. Therefore, the Authority and the Underwriter disclaim any responsibility for the accuracy or completeness of the information relating to Financial Security or the Policy contained herein. The information and expressions of opinion 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 any of the information set forth herein since the date hereof, or the date as of which particular information is given, if earlier.