151-19 - Pulaski County Public Library notice of intent to sell bonds

PULASKI COUNTY 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 Pulaski County Public Library (the “Issuer” or the “Library”), the Issuer will receive by mail at the offices of the Municipal Advisor, 112 IronWorks Avenue, Suite C, Mishawaka, Indiana 46544, 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 September 18, 2019, 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 September 19, 2019. 

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 September 17, 2019. 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 September 17, 2019. 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 “Pulaski County Public Library General Obligation Bonds, Series 2019”, in the aggregate principal amount of $1,750,000 (“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 1, 2020, and semiannually thereafter on January 1 and July 1 of each year. Said Bonds will be dated the date of delivery, will be in the denominations of $5,000 or integral multiples thereof and will mature semiannually on January 1 and July 1 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

07/01/2023 $40,000 07/01/2031 $55,000

01/01/2024 $40,000 01/01/2032 $55,000

07/01/2024 $40,000 07/01/2032 $55,000

01/01/2025 $45,000 01/01/2033 $60,000

07/01/2025 $45,000 07/01/2033 $60,000

01/01/2026 $45,000 01/01/2034 $65,000

07/01/2026 $45,000 07/01/2034 $60,000

01/01/2027 $45,000 01/01/2035 $65,000

07/01/2027 $45,000 07/01/2035 $65,000

01/01/2028 $50,000 01/01/2036 $70,000

07/01/2028 $50,000 07/01/2036 $70,000

01/01/2029 $50,000 01/01/2037 $70,000

07/01/2029 $50,000 07/01/2037 $75,000

01/01/2030 $55,000 01/01/2038 $75,000

07/01/2030 $50,000 07/01/2038 $50,000

01/01/2031 $55,000 01/01/2039 $50,000

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 1 or July 1, beginning on January 1, 2024, with a final maturity no later than January 1, 2039, 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 1, 2030, are redeemable at the option of the Issuer on July 1, 2029, 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 99.5% 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 Pulaski County Public Library General Obligation Bonds, Series 2019” 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 $17,500. 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 “Pulaski County 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. 

As set forth in the hereinafter described Official Statement, each bidder agrees by submission of its bid to assist the Issuer in establishing 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), 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 as further described in the Official Statement. 

Additional information regarding the establishment of the issue price is set forth in the Official Statement, including the appendices 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 the remediation, improvement and equipping of the Carnegie library building on the upper and lower levels, new office space, landscaping, drainage work, and other related improvements and equipment, capitalized interest 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.

In order to assist bidders in complying with Securities and Exchange Commission Rule 15c2-12, as in effect on the date of delivery of the Bonds, the Issuer will undertake, pursuant to a Continuing Disclosure Undertaking Agreement, to provide financial information and notices of certain events. A form of this Continuing Disclosure Undertaking Agreement is available upon request at the offices of Bond Counsel, Dennis H. Otten, Bose McKinney & Evans LLP, 111 Monument Circle, Suite 2700, Indianapolis, IN 46204. 

The Issuer has prepared an Official Statement relating to the Bonds which it deems to be nearly final. A copy of the nearly final Official Statement may be obtained from the Municipal Advisor. Information concerning the Issuer may be obtained from the Municipal Advisor. 

Within seven (7) business days of the sale, the Issuer will provide the successful bidder of each issue of Bonds with 10 copies of the final Official Statement at the Issuer’s expense and such additional copies as may be requested, within five (5) business days of the sale, by the successful bidder at the expense of the successful bidder. Inquiries concerning matters contained in the nearly final Official Statement must be made and pricing and other information necessary to complete the final Official Statement must be submitted by the successful bidder within two (2) business days following the sale to be included in the final Official Statement.

Dated this 4th day of September, 2019.

MacKenzie Ledley

Director

151-19 G 09/04, 09/11

 

Pulaski County Journal

114 W. Main Street
Winamac, IN 46996

Office Number: (574) 946-6628
Fax Number: (574) 946-7471

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