HomeMy WebLinkAboutCOM 0379.000 2016-2018 H Kim oJNty qs"iw; Collins Tomei
Mayor • • - ���i�%�j Director
__ Deanna S. Sako
Deputy Director
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County of Hawaii
Finance Department
25 Aupuni Street, Room 2103 • Hilo,Hawaii 96720
(808)961-8234 • Fax(808)961-8569
P.41
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July 18, 2017 `'' ' (M c
Valerie Poindexter, Council Chair and .... aC;-1
Members of the Hawai`i County Council co o
Hawaii County Council ;ITCD.
25 Aupuni Street
Hilo, HI 96720 _.,.
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Dear Chairman Poindexter and Members of the Council:
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2017 SERIES A, B, C, D, AND E TOTALING $139,895,000
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, 15-121, and 16-66, I have proceeded with the sale and issuance
of$139,895,000 County of Hawai`i, Hawai`i, General Obligation Bonds, 2017 Series A, B, C,
D, and E (hereafter referred to as the "Bonds") and wish to submit the following report.
1. A Bond Purchase Agreement was entered into on June 20, 2017 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, 2018 and the last principal
amount maturing in 2037. The combined all-in true interest cost of the Bonds was computed
to be 2.91%.
• 2. The $90,000,000 Series A bonds were issued to generate new money proceeds that were used
to retire $59.8 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
3.07%.
3. Series B, Series C, Series D, and Series E bonds were used to refund $2.5 million of the 2007
Series B bonds, $3.3 million of the 2007 Series C bonds, and $42.4 million of the 2013 Series
A bonds. The refunding of these bonds resulted in a net present value savings of$2.9 million
or 6.1% of the par amount. 22 p
Comm. No. . )7 / •
Ref. To: Fc.
Ref. Date jL 1 9 2Q17
Hawai'i County is an Equal Opportunity Provider and Employer
Valerie Poindexter, Council Chair and
Members of the Hawai`i County Council
Page 2
July 18, 2017
4. The Bonds received a rating of"Aa2" from Moody's Investors Service and "AA+" from Fitch
Ratings.
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 July 6, 2017.
Please do not hesitate to call me should you have any questions.
Sincerely,
Collins Tomei
Director of Finance