Illinois Finance Authority
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PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 30, 2017 NEW ISSUE RATINGS: S&P: AA+ BOOK-ENTRY ONLY MOODY’S: Aa2 SEE “RATINGS” HEREIN. In the opinion of Chapman and Cutler LLP, Bond Counsel, assuming compliance by the Authority and NMHC (each as defined below) with certain covenants, under present law, interest on the Series 2017A Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations. See “TAX EXEMPTION” herein for a more detailed discussion of certain of the federal income tax consequences of owning the Series 2017A Bonds. The interest on the Series 2017A Bonds is not exempt from present Illinois income taxes. $523,515,000* ILLINOIS FINANCE AUTHORITY REVENUE BONDS, SERIES 2017A (NORTHWESTERN MEMORIAL HEALTHCARE) Dated: Date of Delivery Due: July 15, as shown on the inside cover The Illinois Finance Authority (the “Authority”) is issuing its $523,515,000* Revenue Bonds, Series 2017A (Northwestern Memorial HealthCare) (the “Series 2017A Bonds”) pursuant to a Bond Trust Indenture dated as of December 1, 2017 (the “Bond Indenture”) between the Authority and Wells Fargo Bank, N.A., as bond trustee (the “Bond Trustee”). The proceeds of the Series 2017A Bonds will be loaned to Northwestern Memorial HealthCare (“NMHC”) pursuant to a Loan Agreement dated as of December 1, 2017 (the “Loan Agreement”) between NMHC and the Authority, and will be used for the purposes described herein. Except as described in this Official Statement, the Series 2017A Bonds will be payable solely from and secured by a pledge of payments to be made under the Loan Agreement and on the Series 2017A Obligation issued by NMHC pursuant to the Master Indenture described herein. The sources of payment of, and security for, the Series 2017A Bonds are more fully described in this Official Statement. Interest on the Series 2017A Bonds (based on a 360-day year of twelve 30-day months) will be payable each January 15 and July 15 (each, an “Interest Payment Date”), commencing July 15, 2018. The Series 2017A Bonds, when issued, will be registered initially only in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Series 2017A Bonds. Purchasers of the Series 2017A Bonds will not receive certificates representing their interests in the Series 2017A Bonds purchased. Ownership by the beneficial owners of the Series 2017A Bonds will be evidenced by book-entry only. Principal of and interest on the Series 2017A Bonds will be paid by the Bond Trustee to DTC, which in turn will remit such principal and interest payments to its participants for subsequent disbursement to the beneficial owners of Series 2017A Bonds. As long as Cede & Co. is the registered owner as nominee of DTC, payments on the Series 2017A Bonds will be made to such registered owner, and disbursement of such payments will be the responsibility of DTC and its participants. See “BOOK-ENTRY SYSTEM.” An investment in the Series 2017A Bonds involves a certain degree of risk related to the nature of the business of NMHC and the other Members of the Obligated Group described herein, the regulatory environment and the provisions of the principal documents. A prospective Series 2017A Bondholder is advised to read “SECURITY FOR THE SERIES 2017A BONDS” and “BONDHOLDERS’ RISKS” herein for a description of the security for the Series 2017A Bonds and for a discussion of certain risk factors which should be considered in connection with an investment in the Series 2017A Bonds. THE SERIES 2017A BONDS WILL BE SUBJECT TO OPTIONAL, MANDATORY AND EXTRAORDINARY OPTIONAL REDEMPTION AND PURCHASE IN LIEU OF REDEMPTION, PRIOR TO MATURITY ON THE DATES AND UNDER THE CIRCUMSTANCES DESCRIBED IN THIS OFFICIAL STATEMENT. THE SERIES 2017A BONDS ARE ALSO SUBJECT TO MANDATORY TENDER AS MORE FULLY DESCRIBED HEREIN. This Official Statement summarizes certain terms of the Series 2017A Bonds only while the Series 2017A Bonds bear interest at Fixed Rates established on the original issue date of the Series 2017A Bonds. Should the Series 2017A Bonds or portion thereof be converted to operate in a different Interest Rate Period or to bear interest at new Fixed Rates, the Series 2017A Bonds to be converted will be subject to mandatory tender and purchase and, at that time, it is expected that a reoffering circular or a supplement to this Official Statement or other disclosure document will be prepared for such Series 2017A Bonds. THE AUTHORITY IS OBLIGATED TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE SERIES 2017A BONDS AND OTHER COSTS INCIDENTAL THERETO ONLY FROM THE SOURCES SPECIFIED IN THE BOND INDENTURE. EXCEPT TO SUCH LIMITED EXTENT, THE SERIES 2017A BONDS AND THE INTEREST THEREON DO NOT CONSTITUTE AN INDEBTEDNESS OR AN OBLIGATION, GENERAL OR MORAL, OR A PLEDGE OF THE FULL FAITH OR A LOAN OF CREDIT OF THE AUTHORITY, THE STATE OF ILLINOIS OR ANY POLITICAL SUBDIVISION THEREOF, WITHIN THE PURVIEW OF ANY CONSTITUTIONAL OR STATUTORY LIMITATION OR PROVISION. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER, IF ANY, OF THE AUTHORITY OR THE STATE OF ILLINOIS OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE SERIES 2017A BONDS OR OTHER COSTS INCIDENTAL THERETO, EXCEPT AS OTHERWISE PROVIDED IN THE BOND INDENTURE. NO OWNER OF ANY SERIES 2017A BOND SHALL HAVE THE RIGHT TO COMPEL THE TAXING POWER, IF ANY, OF THE AUTHORITY, THE STATE OF ILLINOIS OR ANY POLITICAL SUBDIVISION THEREOF TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2017A BONDS. THE AUTHORITY DOES NOT HAVE THE POWER TO LEVY TAXES FOR ANY PURPOSES WHATSOEVER. The Series 2017A Bonds are being offered when, as and if issued and received by the Underwriters (as defined herein), subject to prior sale, withdrawal or modification of the offer without notice and to the approval of legality of the Series 2017A Bonds by Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel. Certain legal matters will be passed upon for the Authority by its special counsel, Katten Muchin Rosenman LLP, Chicago, Illinois; for the Underwriters by their special counsel, Nixon Peabody LLP, Chicago, Illinois; and for the Obligated Group by its General Counsel and by its special counsel, Dentons US LLP, Chicago, Illinois. It is expected that the Series 2017A Bonds in definitive form will be available for delivery through the facilities of DTC on or about December 19, 2017. This cover page contains certain information for ease of reference only. It does not constitute a summary of the Series 2017A Bonds or the security therefor. Potential investors must read this entire Official Statement, including the Appendices, to obtain information essential to the making of an informed investment decision. J.P. Morgan Barclays Wells Fargo Securities Loop Capital Markets Cabrera Capital Markets, LLC Official Statement dated December __, 2017 This Preliminary Official Statement and 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 buy be accepted prior to the time Official Statement is delivered to offers not be sold nor may These securities may This Preliminary contained herein are subject to completion or amendment. Official Statement and information would solicitation or sale sale of the securities jurisdictionbuy nor shall there be any in any in which such offer, to Under no circumstances shall this Preliminary to sell or the solicitation of an offer Official Statement constitute an offer form. such jurisdiction. of any under the securities law exemption, prior qualification or to registration, be unlawful * Preliminary, subject to change. Northwestern Medicine system map 75 132 131 12 137 76 69 2 47 31 Lindenhurst 41 173 83 NM Grayslake 120 Outpatient Center 90 14 Gurnee 1475 E. Belvidere Road 134 120 Grayslake, IL 60030 Grayslake 251 60 45 NM Lake Forest Hospital 176 47 660 N. Westmoreland Road 20 176 Lake Forest, IL 60045 2 Vernon Hills 20 23 59 94 14 22 31 90 Highland Park 41 Deerfield 94 68 25 68 2 72 72 62 Glenview Genoa Hampshire 294 72 53 94 NM Kishwaukee Cancer Center 39 10 Health Services Drive 23 Elgin 20 51 DeKalb, IL 60115 47 72 Evanston 90 Northwestern University 25 Bartlett NM Central DuPage Hospital NM Kishwaukee Hospital 25 North Winfield Road Feinberg School of Medicine 251 1 Kish Hospital Drive South Elgin 64 Winfield, IL 60190 420 East Superior Street DeKalb, IL 60115 Sycamore NM Delnor Hospital 59 Sauganash Chicago, IL 60611 300 Randall Road 90 31 Bloomingdale 38 Geneva, IL 60134 Malta Lakeview River Rochelle 64 355 DeKalb St. Charles Bucktown North 64 SoNo 88 NM Delnor Cancer Center Carol Stream Loop –South Clark 304 Randall Road Elmhurst Geneva 38 Geneva, IL 60134 Glen Ellyn 290 Winfield South Loop-Roosevelt Oakbrook Collection Marianjoy Rehabilitation Batavia Terrace Oakbrook 23 Wheaton Hospital, part of NM 56 Northwestern Memorial Hospital 26W171 Roosevelt Road Warrenville 34 88 Downers Grove Arkes Family Pavilion Wheaton, IL 60187 Naperville 39 Lisle 55676 N. Saint Clair Street, Chicago, IL 60611 56 30 53 Feinberg Pavilion Waterman Sugar Grove Aurora 251 E. Huron Street, Chicago,94 IL 60611 34 355 90 25 47 Galter294 Pavilion NM Valley West Hospital NM Chicago Proton Center 201 E. Huron Street, Chicago, IL 60611 1302 North Main Street 31 4455 Weaver Parkway Palos Heights Lavin Family Pavilion Sandwich, IL 60548 Warrenville, IL 60555 259 E.