HomeMy WebLinkAboutCOM 0147.000 2012-2014 William P. Kenoi ;. ^„\�=l Nancy E. Crawford
Mayor �i�%s Director
:neer Deanna S. Sako
+ o er, Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street,Room 2103 • Hilo,Hawaii 96720
(808)961-8234 • Fax(808)961-8569
February 19, 2013
The Honorable J Yoshimoto
And Members of the Council . .
County of Hawai`i
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Yoshimoto and Members of the Council:
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2013 SERIES A, B, AND C TOTALING $98,825,000
Pursuant to the authority granted by County Council Ordinance Nos. 04-59, as amended, 07-120,
as amended, 08-106, as amended, 08-148, as amended, 09-153, as amended, 11-40, 12-77, 12-
150, 12-163, and 13-6, I have proceeded with the sale and issuance of$98,825,000 County of
Hawai`i, Hawai`i, General Obligation Bonds, 2013 Series A, B, and C (hereafter referred to as
the "Bonds") and wish to submit the following report.
1. A Bond Purchase Agreement was entered into on January 30, 2013 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 bona fide 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 September 1, 2013 and the last principal
amount maturing in 2032. The combined all-in true interest cost of the Bonds was computed
to be 2.58%.
2. The Series A bonds were used to refinance eleven state revolving fund loans, two USDA
loans made to an improvement district, and two FHA loans made to finance the Kulaimano
Elderly Housing Project. These refinancings totaled $10.5 million and resulted in a net
present value savings of$1.5 million. Bond anticipation notes in the amount of$33 million
were also paid off. The remaining bond proceeds totaling $27.5 million will be used to
finance new capital improvement projects.
Comm. No. / ( 7
Ref. To: F��=[,
Ref. Date 1 9 2913
Hawaii County is an Equal Opportunity Provider and Employer
The Honorable J Yoshimoto
And Members of the Council
Page 2
February 19, 2013
3. Series B and Series C bonds were used to refund $23.6 million of the 2003 Series A bonds
and $19.8 million of the 2004 Series A bonds, respectively. The refunding of the 2003 Series
A bonds resulted in a net present value savings of$4 million. The net present value savings
of the 2004 Series A refunding was $3 million.
4. The Bonds received a rating of"Aa2" from Moody's Investors Service, and "AA-" from both
Standard & Poor's Ratings Services and Fitch Ratings.
5. Brian Hirai from the law firm of McCorriston Miller Mukai & MacKinnon LLP served as
bond counsel. Gary Kitahata was hired as a financial advisor. U.S. Bank National
Association was selected to serve as registrar, paying agent, and escrow agent for the Bonds.
A full book-entry system was established for the Bonds.
6. The Bonds were purchased and delivered on February 12, 2013.
Please do not hesitate to call me should you have any questions.
Sincerely,
4447 1444/(7(741
Nancy E. Crawford
Director of Finance
APPROVED:
•
William P. Kenoi
Mayor
Hawaii County is an Equal Opportunity Provider and Employer