HomeMy WebLinkAboutCOM 0564.004 2004-2006 ,~f!rr or
4•' is,
Harry Kim William T. Takaba
Mayor Director
Nancy E. Crawford
•~t'oi d:
Deputy
County of Hawaii
DEPARTMENT OF FINANCE
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720-4252 ,
(608) 961-8234 (808) 961-8248
February 23, 2006 -
The Honorable Stacy K. Higa
And Members of the Council
County of Hawaii
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Higa and Members of the Council:
RE: COUNTY OF HAWAII
GENERAL OBLIGATION BONDS
2006 SERIES A, $50,000,000
Pursuant to the authority granted by County Council Ordinance No. 06-12, I have
proceeded with the sale and issuance of $50,000,000 in County of Hawaii
General Obligation Bonds, 2006 Series A, and wish to submit the following
report.
1. After analysis of the relative merits of selling the Bonds at a competitive or a
negotiated sale, a decision was made to sell the Bonds through a competitive
bidding process. Gary Kitahata was hired as a financial advisor to facilitate
the competitive sale of the Bonds. On February 8, 2006, bids to purchase the
Bonds were received from ten underwriters through an electronic bidding
platform. The low bid was received from Merrill Lynch & Co. with a true
interest cost of 4.16%. Merrill Lynch elected to purchase bond insurance from
CIFG Assurance North America, Inc. Based on such insurance, the Bonds
have been rated "Aaa" by Moody's Investor Services and "AAA" by Standard
& Poors' Corporation. The underlying rating by Standard & Poor's has been
upgraded from "A" to "A+". S (o~{~{
Comsn. No.
Ref. To:
Ref, care
The Honorable Stacy K. Higa
And Members of the Council
Page 2
February 23, 2006
2. The Bank of New York in San Francisco, California, was appointed to serve
as Registrar and Paying Agent for the Bonds. A full book-entry system was
established for the Bonds.
3. The Bonds were delivered and the purchase price paid for on February 23,
2006.
Please do not hesitate to call me should you have further questions.
Yours truly,
l~~~u
William T. Takaba
Director of Finance
APPROVED:
C~~.e,~,4,~
p Harry Kim
I Mayor