OFFICIAL NOTICE OF INTENT TO SELL $13,500,000 CITY OF NEW ALBANY, INDIANA SEWAGE WORKS REVENUE BONDS, SERIES 2016A NOTICE IS HEREBY GIVEN that upon not less than twenty-four (24) hours notice given by telephone, , email, or otherwise, separate electronic and sealed bids will be received on behalf of the City of New Albany, Indiana (the City) in care of the City's municipal advisor, Crowe Horwath LLP, c/o Jennifer Wilson, 3815 River Crossing Parkway, Suite 300, Indianapolis, Indiana 46240, (317) 269-6696 (telephone), , jennifer.wilson@crowehorwath.com (e-mail), in the manner as set forth herein for the purchase of the bonds of the City designated as City of New Albany, Indiana, Sewage Works Revenue Bonds, Series 2016A (the Bonds) in the aggregate principal amount of Thirteen Million Five Hundred Thousand and 00/100 Dollars ($13,500,000), bearing interest at a rate or rates not exceeding six percent (6.00%) per annum. TYPES OF BIDS ALLOWED. Bidders may submit a sealed bid (e-mail allowed) to the City's municipal advisor at the address described above until 11:00 a.m., E.S.T. (Indianapolis Time) on the date identified in the notice given by, or on behalf of the City, twenty-four (24) hours prior to the sale of the Bonds. It is currently anticipated that sealed bids will be requested to be submitted on December 20, 2016. FORM, MATURITY AND PAYMENT OF BONDS. Interest on the Bonds shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred and sixty (360)-day year and shall be payable semiannually on March 1 and September 1 in each year, commencing March 1, 2017. The Bonds will be issued as fully registered bonds in book-entry-only form in denominations of $5,000 or any integral multiples thereof, not exceeding the aggregate principal amount of such Bonds maturing on the applicable principal payment date, and when issued, may be registered in the name of Cede & Co., as nominee for The Depository Trust Company (DTC), New York, New York. If Cede & Co. is the registered owner of the Bonds, purchasers of beneficial interests in the Bonds will not receive physical delivery of bond certificates and ownership by the Beneficial Owners of the Bonds will be evidenced by book-entry only. As long as Cede & Co. is the registered owner of the Bonds as nominee of DTC, payments of principal and interest will be made directly to such registered owner, which will in turn, remit such payments to the DTC Participants for subsequent disbursement to the Beneficial Owners. The City shall not have any liability for the failure of DTC or any DTC Participant to remit the payment or provide any notice to any Beneficial Owner of Bonds. The Bonds shall be numbered consecutively from 2016R-1 upward, shall bear an original issue date which shall be the date the Bonds are issued and shall mature on the dates and in the amounts as set forth in a schedule to be provided to prospective bidders not less than twenty-four (24) hours prior to the time of bidding. As an alternative to part or all of the above series of maturities, the City will consider bids for a term bond or bonds, subject to mandatory sinking fund redemption by lot prior to maturity consistent with the dates and the amounts set forth above at a price equal to the principal amount thereof, plus accrued interest to the date of redemption without premium. All payments of interest on the Bonds will be paid by check or draft mailed one business day prior to each interest payment date, to the registered owners of the Bonds at the address as it appears on the registration books kept by the Registrar and Paying Agent as of the fifteenth day of the month immediately preceding the interest payment date or at such other address as is provided to the Registrar and/or Paying Agent in writing by such registered owner. Principal on the Bonds will be payable at the principal office of the Paying Agent. Notwithstanding the foregoing, so long as DTC or its nominee is the registered owner of the Bonds, principal of and interest on the Bonds will be paid directly by the Paying Agent to DTC as provided hereinabove. INTEREST RATES. Each bid must be for all of the Bonds and must state the rate or rates of interest therefor, not exceeding the maximum per annum interest rate hereinbefore specified. Such interest rate or rates must be in multiples of one-eighth (1/8) or one-hundredth (1/100) of one percent (1.00%). Bids specifying more than one interest rate must also specify the amount and maturities of the Bonds bearing each rate. All Bonds maturing on the same date shall bear the same rate of interest and the interest rate bid on any maturity of Bonds shall be equal to or greater than the interest rate bid on any and all prior maturities of Bonds. Although not a term of sale, it is requested that each bid show the net dollar cost to final maturity and the net effective interest rate on the entire issue. BIDDING DETAILS. Any person interested in submitting a bid for the Bonds must furnish written notice of such intent along with such person's name, address and telephone number, on or before 10:00 a.m., E.D.T., December 19, 2016, to Crowe Horwath LLP, c/o Jennifer Wilson, 3815 River Crossing Parkway, Suite 300, Indianapolis, Indiana 46240, (317) 269-6696 (telephone), , jennifer.wilson@crowehorwath.com (e-mail). The person may also furnish a telex or e-mail address. The City will cause each person so registered to be notified of the date and time bids will be received for the Bonds, 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 also by telex and electronically if a telex or e-mail address has been furnished. No conditional bid or bids for less than ninety-nine percent (99%) of the par value of the Bonds, will be considered. The City reserves the right to reject any and all bids and to waive any informality in any bid. If no acceptable bid is received on the date fixed for sale of the Bonds, the sale may be continued from day to day thereafter without further advertisement for a period not to exceed thirty (30) days, but if so continued, no bid will be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for the sale. Each of the bids for the Bonds shall (i) be sealed in an envelope marked Bid for the City of New Albany, Indiana, Sewage Works Revenue Bonds, Series 2016, (ii) must be on the form approved by the City, without additions, alterations or erasures, which form may be obtained from the City's Municipal Advisor at the address set forth herein; and (iii) delivered to the Municipal Advisor on behalf of the City as required hereinabove. 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 1539 Broadway, 2nd Floor, New York, New York 10018 (phone: 212-849-5021). AMENDMENTS. The City reserves the right to amend any information contained in this Notice of Intent to Sell Bonds. The City also reserves the right to postpone, from time to time, the date established for the receipt of bids on the Bonds. Any such amendment or postponement will be announced at any time prior to the date and time established for the sale. If any date fixed for the sale is postponed, any alternative sale date will be announced at least twenty-four (24) hours prior to such alternative sale date. BASIS FOR AWARD. The sale of the Bonds will be awarded to the bidder making a bid that conforms to the specifications herein and which produces the lowest Net Interest Cost to the City. The lowest Net Interest Cost is determined by computing the total interest on all of the Bonds to their maturities based upon the schedule provided and deducting therefrom the premium bid, if any, and adding thereto the discount bid, if any. In the event of a bidder's error in interest cost calculations, the interest rates, premium, if any, and discount, if any, set forth or incorporated by reference in the Official Bid Form will be considered as the intended bid. GOOD FAITH DEPOSIT. The successful bidder will be required to deliver to the municipal advisor on behalf of the City a certified or cashier's check or wire transfer consisting of immediately available funds to the City as instructed by the municipal advisor on behalf of the City, or a financial surety bond in the amount of One Hundred Thirty-Five Thousand and 00/100 Dollars ($135,000) (the amount of such check or financial surety bond being referred to hereinafter as the Deposit) by 11AM EST on the business day immediately following the day the bid is accepted. If a check is submitted, it must be drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation. If a financial surety bond is used, it must be from an insurance company. In either case, the Deposit must be submitted to the City or its Municipal Advisor by 11AM EST on the business day immediately following the day after the bid is accepted in order to qualify the bid and shall be made payable to City of New Albany, Indiana, as a guarantee of the good faith of the bidder. In the event the bidder to whom the Bonds are awarded shall fail or refuse to comply with the provisions of the bid and this notice, such Deposit shall become the property of the City and shall be taken and considered as liquidated damages of the City on account of such failure or refusal. The successful bidder will be required to make payment for the Bonds in Federal Reserve 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, at a bank designated by the City. Any premium bid must be paid in cash at the time of delivery as a part of the purchase price of the Bonds. The Bonds will be ready for delivery within sixty (60) days after the date on which the award is made, and if not deliverable within that period, the successful bidder will be entitled to rescind the sale and the good faith check will be returned. Any notice of rescission must be in writing. At the request of the City, the successful bidder shall furnish to the City, simultaneously with or before delivery of the Bonds, a certificate in form satisfactory to the City regarding the price at which a substantial amount of Bonds of each maturity was re-offered to the public, if applicable. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder 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 the contract evidenced thereby and no liability shall hereafter attach to the City or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, it shall be responsibility of the successful bidder to timely obtain the numbers and to pay the CUSIP Service Bureau charge for the assignment of the numbers. The successful bidder will also be responsible for any other fees or expenses it incurs in connection with the resale of the Bonds. AUTHORITY, PURPOSE AND SOURCE OF SECURITY. The Bonds are being issued under the provisions of the Indiana Code for the purpose of procuring funds to pay the costs of certain sewage works improvements for the City. The principal of and interest on the Bonds will be payable solely from the net revenues of the City's sewage works. The Bonds do not constitute an indebtedness of the City within the provisions and limitations of the Constitution of the State of Indiana. BOND DELIVERY. At the time of delivery of the Bonds, the approving opinion of Barnes & Thornburg LLP, Indianapolis, Indiana, bond counsel, as to the validity of the Bonds, together with a transcript of bond proceedings, the printed Bonds and closing certificates in the customary form showing no litigation, will be furnished to the successful bidder at the expense of the City. In addition, unless bond counsel is able, on the date of delivery, to render an opinion to the effect that (1) under existing laws, regulations, judicial decisions and rulings, interest on the Bonds is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, for federal income tax purposes, and (2) the interest on the Bonds is exempt from income taxation in the state of Indiana for all purposes except the state financial institutions tax, the successful bidder shall have the right to rescind the sale, and in such event the good faith deposit will be returned. If bids are submitted by mail, they should be addressed to the City in care of the municipal advisor at the address listed above. Dated this 5th day of December, 2016. CITY OF NEW ALBANY, INDIANA hspaxlp
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