HomeMy WebLinkAboutCOM 0044.000 2008-2010
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William P. Kenoi Nancy E. Crawford
Mayor Director
Deanna S. Sako
•i'•., e;M~` Deputy rector
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Finance Department m^
25 Aupum Sheet, Room 118 • Hilo, Hawaii 96720 ,
(808) 961-8234 Fax (808) 961-8248
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December 11, 2008 o
The Honorable J Yoshimoto
And Members of the Council
County of Hawaii
333 Kilauea Avenue, Second Floor
Hilo, HI 96720
Dear Chairman Yoshimoto and Members of the Council:
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2008 SERIES A, TOTALING $50,000,000
Pursuant to authority granted by County Council Ordinance Nos. 08-148, 08-106, 07-120,
04-154, and 04-59,1 have proceeded with the sale and issuance of $50,000,000 County of
Hawaii, Hawaii, General Obligation Bonds, 2008 Series A (hereafter referred to as the
"Bonds") 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 Bond Purchase Agreement was entered into on November 25, 2008 with Merrill
Lynch, Pierce, Fenner & Smith Incorporated (the "underwriter") for the sale of the
Bonds. The Bond Purchase Agreement obligated the underwriter to make a bonafide
offering of the Bonds to the public. The Bonds were sold with the Bonds amortizing on
a level annual debt service basis, with the first principal amount maturing in 2010 and
the last principal amount maturing in 2028. The true interest rate of the Bonds was
computed to be 5.19%.
2. The Bonds received a rating of "A1" and "A+" by Moody's Investors Services and Fitch
Ratings, respectively. Standard & Poor's Ratings Services upgraded the Bonds to "AA-".
No bond insurance was purchased to enhance the rating.
3. Brian Hirai from the law firm of McCorriston, Mukai, Miller & MacKinnon LLP served
as bond counsel. Gary Kitahata was hired as a financial advisor.
4. The Bonds were purchased and delivered on December 10, 2008.
Comm: No. 4V
Ref. To- 77M-
Hawai'i County is an Equal Opportunity Provider and Employer Ref. Date U 88 ma
03
The Honorable J Yoshimoto
And Members of the Council
Page 2
December 11, 2008
If there are any questions, please do not hesitate to call.
Sincerely,
Nancy E. Crawford
Director of Finance
APPROVED:
illiam P. Kenoi
Mayor