120-20 - FRANCESVILLE-SALEM TOWNSHIP PUBLIC LIBRARY NOTICE OF INTENT TO SELL BONDS
FRANCESVILLE-SALEM TOWNSHIP PUBLIC LIBRARY
NOTICE OF INTENT TO SELL BONDS
Upon not less than twenty-four (24) hours’ notice given by telephone or E-Mail by Baker Tilly Municipal Advisors, LLC (the “Municipal Advisor”), as designee for Francesville-Salem Township Public Library (the “Issuer” or the “Library”), the Issuer will receive by mail at the offices of the Municipal Advisor, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240, and consider bids for the purchase of the following described bonds (or in the alternative, bids may be submitted thru “PARITY” or via E-Mail at bids@bakertilly.com). Any person interested in submitting a bid for the bonds may furnish in writing to the Issuer, c/o its Municipal Advisor, at the aforementioned address or E-Mail Address, on or before 11:00 a.m. (Eastern Daylight Time) by August 24, 2020, the person’s name, address and telephone number and if desired, E-Mail address. The Issuer’s representative or its designee will notify (or cause to be notified) each person so registered of the date and time bids will be received not less than twenty-four (24) hours before the date and time of sale. The notification shall be made by telephone at the number furnished by such person and/or by E-Mail, if an E-Mail address has been received. The sale is expected to take place on or about August 25, 2020.
If a potential bidder has questions related to the Issuer, the financing or the submission of bids, questions should be submitted by electronic mail to the Municipal Advisor at the addresses set forth in this notice no later than 11:00 a.m. (Eastern Daylight Time) on August 21, 2020. Any question submitted after such date and time or not submitted via electronic mail to the Municipal Advisor at the addresses set forth in this notice will not receive any response. To the best of the Issuer’s ability, all questions submitted on or before such date and time and submitted via electronic mail to the Municipal Advisor at the addresses set forth in this notice will be addressed by the Issuer and sent to all potential bidders requesting the 24 hours’ notice of sale no later than 5:00 p.m. (Eastern Daylight Time) on August 21, 2020. Additionally, upon request, the written responses of the Issuer will be sent via electronic mail to any other interested person or entity requesting such written responses. Potential bidders should review the information in this notice as well as the Official Statement (hereinafter described) for information regarding the Issuer, the financing and the submission of bids in advance of the above-stated deadline for submission of questions.
At the time designated for the sale, the Issuer will receive and consider bids for the purchase of the bonds of the Issuer designated as “Francesville-Salem Township Public Library General Obligation Bonds, Series 2020”, in the aggregate principal amount of $700,000 (“Bonds”). Each bid must be for not less than all of the Bonds described herein. The Bonds will bear interest at a rate or rates not to exceed 5.0% per annum (the exact interest rate or rates will be determined by bidding). Interest will be calculated on a 30/360-day basis and will be payable on July 15, 2021, and semiannually thereafter on January 15 and July 15 of each year. Said Bonds will be dated the date of delivery, will be in the denominations of (i) $5,000 or integral multiples thereof or (ii) $100,000 and $1,000 integral multiples in excess thereof (or other denominations as requested by the winning bidder), and will mature semiannually on January 15 and July 15 of each year, on the dates and in the amounts as follows, provided that the Issuer reserves the right to restructure the principal maturities of the Bonds to achieve its financial objectives with respect to the Bonds based upon the rates bid by the successful bidder:
Date Principal Amount Date Principal Amount
07/15/2021 $ 5,000 01/15/2031 $20,000
01/15/2022 10,000 07/15/2031 20,000
07/15/2022 15,000 01/15/2032 20,000
01/15/2023 15,000 07/15/2032 20,000
07/15/2023 15,000 01/15/2033 20,000
01/15/2024 15,000 07/15/2033 20,000
07/15/2024 15,000 01/15/2034 20,000
01/15/2025 15,000 07/15/2034 20,000
07/15/2025 15,000 01/15/2035 20,000
01/15/2026 15,000 07/15/2035 20,000
07/15/2026 15,000 01/15/2036 25,000
01/15/2027 20,000 07/15/2036 20,000
07/15/2027 15,000 01/15/2037 25,000
01/15/2028 20,000 07/15/2037 20,000
07/15/2028 15,000 01/15/2038 25,000
01/15/2029 20,000 07/15/2038 20,000
07/15/2029 15,000 01/15/2039 25,000
01/15/2030 20,000 07/15/2039 25,000
07/15/2030 15,000 01/15/2040 25,000
All or a portion of the Bonds may be issued as one or more term bonds, upon election of the successful bidder. Such term bonds shall have a stated maturity or maturities of January 15 or July 15, beginning on January 15, 2022, with a final maturity no later than January 15, 2040, as determined by the successful bidder. Term bonds shall be subject to mandatory sinking fund redemption and final payment(s) at maturity at 100% of the principal amount thereof, plus accrued interest to the redemption date, on dates consistent with the above schedule.
At the request of the successful bidder, the Bonds may be issued as fully registered Bonds in book entry only form, registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). In such case, the successful bidder is expected to apply to DTC to make such Bonds depository eligible.
The Bonds maturing on and after January 15, 2031, are redeemable at the option of the Issuer on July 15, 2030, or any date thereafter, on thirty (30) days’ notice, in whole or in part, in the order of maturity as determined by the Issuer and by lot within a maturity, at face value plus accrued interest to the date fixed for maturity.
Principal is payable at the office of a registrar and paying agent to be designated by the Issuer. Interest shall be paid by check mailed to the registered owners or by wire transfer to depositories. The Bonds will be issued in fully registered form.
Each bid must be for all of said Bonds and must state the rate or rates of interest in multiples of 1/8 or 1/100 of 1%. Any bids specifying two or more interest rates shall also specify the amount and maturities of the Bonds bearing each rate, but all Bonds maturing on the same date shall bear the same single interest rate. The award will be made to the bidder complying with the terms of sale and offering the lowest net interest cost to the Issuer, to be determined by computing the total interest on all of the Bonds to their maturities and deducting therefrom the premium bid, if any, and adding thereto the discount bid, if any. Although not a term of sale, it is requested that each bid show the net dollar interest cost to final maturity and the net effective average interest rate on the entire issue. No conditional bid or bid for less than 98.0% of the face value of said Bonds will be considered. The right is reserved to reject any and all bids. If no satisfactory bids are received at the time and on the date fixed for the sale, the sale may be continued from day to day thereafter without further advertisement for a period of thirty (30) days, during which time no bid which provides a higher true interest cost to the Issuer than the best bid received at the time of the advertised sale will be considered.
Each bid must be on the bid form provided by the Issuer which shall be enclosed in a sealed envelope addressed to the District of the Library and marked “Bid for Francesville-Salem Township Public Library General Obligation Bonds, Series 2020” or emailed to the Municipal Advisor at the email address listed above. The winning bidder will be notified and instructed to submit a good faith deposit which may consist of either a certified or cashier’s check or wire transfer in the amount of 1% of the par amount of the Bonds. If a check is submitted, it shall be drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation and shall be submitted to the Issuer (or the successful bidder shall wire transfer the deposit amount as instructed by the Issuer) not later than 3:30 p.m. (Eastern Daylight Time) on the next business day after the date of the award. In either case, the deposit shall be payable to the “Francesville-Salem Township Public Library” and shall be held as a guaranty of the performance of the bid. No interest on the deposit will accrue to the successful bidder. In the event the successful bidder fails to honor its accepted bid, the deposit will be retained by the Issuer. The deposit will be applied to the purchase price of the Bonds. The successful bidder will be required to make payment for the Bonds in Federal Reserve funds or other immediately available funds and accept delivery of the Bonds within five (5) days after being notified that the Bonds are ready for delivery. It is anticipated that the Bonds will be ready for delivery within thirty (30) days of the sale date, and if not ready for delivery within forty-five (45) days after the sale date, the purchaser shall be entitled to rescind the sale and obtain the return of the good faith deposit.
Each bidder agrees by submission of its bid to assist the Issuer in establishing the issue price of the Bonds. In the event that the Issuer fails to receive a bid on the Bonds from at least three underwriters, the Issuer shall so advise the successful bidder for the Bonds. If the competitive sale requirements are not satisfied (i.e. 3 bids are not received) and the winning bidder will be reoffering the Bonds, the issue prices will be established by either: (1) certification by the bidder at the time of award as to maturities that meet the 10% test (the first price at which 10% of a maturity of the Bonds is sold to the public), or (2) certification by the bidder on the closing date as to maturities that meet the hold-the-offering-price rule. If the winning bidder will not be reoffering the Bonds, such winning bidder shall execute a sophisticated investor letter evidencing the same.
Additional information regarding the establishment of the issue price is set forth in the Term Sheet, including the attachments thereto, relating to the Bonds. The opinion of Bose McKinney & Evans LLP, bond counsel, of Indianapolis, Indiana, approving the legality of said Bonds, together with a transcript of the bond proceedings, and closing certificates in the usual form showing no litigation, will be furnished to the successful bidder at the expense of the Issuer.
Bids may be submitted electronically via PARITY in accordance with this notice until the time fixed for the sale, but no bid will be received after such time. To the extent any instructions or directions set forth in PARITY conflict with this notice, the terms of this notice shall control. For further information about PARITY, potential bidders may contact the Municipal Advisor at the address set forth herein, or may contact i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018 (phone: 212-849-5021).
CUSIP identification numbers may be printed on the Bonds if requested by the successful bidder; provided, however, that neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the successful bidder therefor to accept delivery of and pay for the Bonds in accordance with the terms of its bid. No CUSIP identification number shall be deemed to be a part of any Bond or a part of the contract evidenced thereby, and no liability shall hereafter attach to the Issuer or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing of CUSIP identification numbers on the Bonds shall be paid for by the Issuer; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the successful bidder. The successful bidder will also be responsible for any other fees or expenses it incurs in connection with the resale of the Bonds, including any charges in connection with DTC.
The Bonds are being issued under the provisions of Indiana Code 36-12-3, as amended, for the purpose of providing funds to be applied to the costs of acquiring property, constructing, extending, altering, improving, remodeling, and equipping renovations to the Library, including addressing basement water infiltration, sealing the building envelope, HVAC improvements, roofing improvements, window upgrades, new carpeting, door improvements, new furniture, additional storage, office space expansion, lighting improvements, sump pump improvements, signage improvements, elevator maintenance and wall plaster improvements, and costs of issuance of the Bonds. The Bonds will be, as to all the principal thereof and interest due thereon, general obligations of the Issuer, payable from ad valorem property taxes on all taxable property in the Library district. The Issuer has covenanted that it will cause ad valorem property taxes for the payment of the principal of and interest on the Bonds to be levied, collected, appropriated and applied for that purpose. The Bonds are subject to Indiana Code 6-1.1-20.6 regarding the circuit breaker tax credit.
In the opinion of Bose McKinney & Evans LLP, bond counsel, under the federal statutes, decisions, regulations and rulings existing on this date, the interest on the Bonds is excludable from gross income for purposes of federal income taxation. The Bonds are subject to the Internal Revenue Code of 1986, as amended (the “Code”), which imposes limitations on the issuance of obligations such as the Bonds under federal tax law. The Issuer has covenanted to comply with those limitations to the extent required to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes. The Issuer has designated the Bonds as qualified tax-exempt obligations for purposes of Section 265(b) of the Code.
No Official Statement has been prepared for, and no Continuing Disclosure Undertaking Agreement will be entered into by the Issuer in connection with, the Bonds. The Issuer has prepared a Term Sheet relating to the Bonds which may be obtained from the Municipal Advisor.
Dated this 4th day of August, 2020.
/s/ Darlene Mellon
Secretary, Board of Trustees
120-20 G 08/05, 08/12