HomeMy WebLinkAboutCOM 0767.000 2014-2016 �tYM+4''•
William P.Kenoi _ f. ,, , Deanna S. Sako
Mayor ��¢� Director
• I Lisa K. Miura
'.,; �:•� Deputy Director
• 1Tt p'f'N!''•_-
County of Hawaii
Finance Department
25 Aupuni Street, Room 2103 • Hilo,Hawaii 96720
(808)961-8234 • Fax(808)961-8569
March 16, 2016
The Honorable Dru Kanuha
And Members of the Council . -
County of Hawai`i
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Kanuha and Members of the Council:
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2016 SERIES A, B, C, D, E, AND F TOTALING $235,765,000
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, 11-40, as amended, 12-77, 12-150, 12-
163, 13-23, 14-11, 15-18, 15-68, and 15-121, I have proceeded with the sale and issuance of
$235,765,000 County of Hawai`i, Hawai`i, General Obligation Bonds, 2016 Series A, B, C, D,
E, and F (hereafter referred to as the "Bonds") and wish to submit the following report.
1. A Bond Purchase Agreement was entered into on February 3, 2016 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 September 1, 2017 and the last principal
amount maturing in 2035. The combined all-in true interest cost of the Bonds was computed
to be 2.33%.
2. The $99,620,000 Series A bonds were issued to generate new money proceeds that was used
to retire $60 million in bond anticipation notes and to finance various capital improvement
projects. The all-in true interest cost (TIC) for Series A (tax exempt, new money series) was
2.74%.
3. Series B, Series C, Series D, and Series E bonds were used to refund $30.8 million of the
2006 Series A bonds, $51.9 million of the 2007 Series A bonds, $32.0 million of the 2008
Series A bonds, and $24.9 million of the 2010 Series A bonds, respectively. The refunding of
these bonds resulted in a net present value savings of$18.3 million or 13.1% of the par
Comm. No. -7G
Ref. To: C.
Ref. Date MAR 1 7 ZO16
Hawaii County is an Equal Opportunity Provider and Employer
The Honorable Dru Kanuha
And Members of the Council
Page 2
March 16, 2016
amount. The $10.04 million Series F taxable bonds will be used to finance various capital
improvement projects.
4. The Bonds received a rating of"Aa2" from Moody's Investors Service and "AA-" from
Standard& Poor's Ratings Services.
5. The bonds were underwritten by Bank of America Merrill Lynch who served as the book-
running senior manager. Stifel,Nicolaus & Company served as the sole co-manager. 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 18, 2016.
Please do not hesitate to call me should you have any questions.
Sincerely,
Deanna S. Sako
Director of Finance
Hawaii County is an Equal Opportunity Provider and Employer