*Preliminary, subject to change.
\u2020CUSIP numbers are provided for convenience of reference only. Neither the Corporation, the City nor the Underwriter assumes any responsibility for the accuracy of
such numbers. CUSIP Copyright 2008, American Bankers Association. CUSIP data herein is provided by Standard & Poor\u2019s CUSIP Service Bureau, a division of The
McGraw-Hill Companies, Inc.
In the opinions of Squire, Sanders & Dempsey L.L.P., San Francisco, California, and of Alexis S. M. Chiu, Esq., San Francisco, California, Co-Bond Counsel, under existing law and assuming continuing compliance with certain covenants and the accuracy of certain representations, (i) interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations and (ii) interest on the Bonds is exempt from State of California personal income taxes. Interest on the Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. For a more complete discussion of the tax aspects, see \u201cTAX MATTERS\u201d herein.
CITY AND COUNTY OF SAN FRANCISCO FINANCE CORPORATION
LEASE REVENUE BONDS, SERIES 2008A
The City and County of San Francisco Finance Corporation Lease Revenue Bonds, Series 2008A (the \u201cBonds\u201d), are being issued pursuant to an Indenture, dated as of January 1, 1991, as amended and restated as of October 15, 1998, and as supplemented by the Sixteenth Supplemental Indenture, dated as of April 1, 2008 (collectively, the \u201cIndenture\u201d), by and between the City and County of San Francisco Finance Corporation (the \u201cCorporation\u201d) and U.S. Bank National Association, San Francisco, California (the \u201cTrustee\u201d). The Bonds are being sold to provide funds to finance the acquisition and installation of certain equipment (the \u201cProject,\u201d as more fully described herein) to be leased to the City and County of San Francisco (the \u201cCity\u201d) pursuant to an Equipment Lease, dated as of January 1, 1991, by and between the Corporation and the City, as amended and restated as of October 15, 1998, and as supplemented by Equipment Lease Supplement No. 15, dated as of April 1, 2008 (collectively, the \u201cLease\u201d). Subject to the condition that there is no substantial interference with the City\u2019s use and possession of the Project, or any portion thereof, the City has covenanted in the Lease to take such action as may be necessary to include and maintain all Base Rental and Additional Rental payments (collectively, the \u201cRental Payments\u201d) for the Project in its annual budget, and to make necessary annual appropriations therefor. (The terms \u201cBase Rental\u201d and \u201cAdditional Rental\u201d are defined herein.) Principal of and interest on the Bonds are payable from the Base Rental payments and from certain funds held under the Indenture.
Interest on the Bonds is payable on April 1 and October 1 of each year, commencing October 1, 2008. The Bonds will be delivered only in fully registered form and, when executed and delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (\u201cDTC\u201d). Individual purchases of the Bonds will be made in book-entry form only, in the principal amount of $5,000 and integral multiples thereof. Principal and interest with respect to the Bonds will be paid by the Trustee to DTC (as described herein), which will in turn remit such principal and interest to the participants in DTC for subsequent disbursement to the Beneficial Owners of the Bonds. See \u201cAPPENDIXF\u2013DTC ANDTHEBOOK-ENTRYONLYSYSTEM.\u201d
THE BONDS ARE LIMITED OBLIGATIONS OF THE CORPORATION PAYABLE SOLELY FROM BASE RENTAL PAYMENTS MADE BY THE CITY PURSUANT TO THE LEASE AND OTHER AMOUNTS (INCLUDING THE PROCEEDS OF THE SALE OF THE BONDS) HELD IN CERTAIN FUNDS AND ACCOUNTS ESTABLISHED PURSUANT TO THE INDENTURE, OTHER THAN THE REBATE FUND. USE OF AMOUNTS HELD IN SUCH FUNDS AND ACCOUNTS IS SUBJECT TO THE PROVISIONS OF THE INDENTURE PERMITTING THE APPLICATION OF SUCH AMOUNTS FOR THE PURPOSES AND ON THE TERMS AND CONDITIONS SET FORTH IN THE INDENTURE. THE CORPORATION SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS ONLY FROM THE FUNDS DESCRIBED IN THE INDENTURE AND NEITHER THE CORPORATION NOR ANY MEMBER OF ITS BOARD OF DIRECTORS SHALL INCUR ANY LIABILITY OR ANY OTHER OBLIGATION WITH RESPECT TO THE ISSUANCE OF THE BONDS. THE OBLIGATION OF THE CITY TO MAKE RENTAL PAYMENTS UNDER THE LEASE DOES NOT CONSTITUTE AN OBLIGATION OF THE CITY TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY TO MAKE RENTAL PAYMENTS UNDER THE LEASE CONSTITUTES A DEBT OF THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF THE CONSTITUTION OF THE STATE OF CALIFORNIA OR ANY STATUTORY DEBT LIMITATION OR RESTRICTION.
The Bonds are offered when, as and if issued by the Corporation and received by the initial purchasers, subject to the approval of legality by Squire, Sanders & Dempsey L.L.P., San Francisco, California, and Alexis S. M. Chiu, Esq., San Francisco, California, Co-Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the City by the City Attorney and for the Corporation by its counsel, Miller Brown & Dannis, San Diego, California. It is expected that the Bonds in book-entry form will be available for delivery through the facilities of DTC on or about April 23, 2008.
No dealer, broker, salesperson or other person has been authorized by the Corporation to give any information or to make any representations other than those contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by the Corporation. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.
The information set forth herein provided by parties other than the City and the Corporation, although obtained from sources which are believed to be reliable, is not guaranteed as to accuracy or completeness. The information and expressions of opinion herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Corporation or the City since the date hereof. Further, a wide variety of information, including financial information, concerning the City is available from the City, City departments and agencies, and their respective publications and websites. No such information is part of or incorporated into this Official Statement, except as expressly noted herein. Any such information that is inconsistent with the information in this Official Statement should be disregarded.
When used in this Official Statement and in any continuing disclosure by the City, in any press release and in any oral statement made with the approval of an authorized officer of the City, the words or phrases \u201cwill likely result,\u201d \u201care expected to,\u201d \u201cwill continue,\u201d \u201cis anticipated,\u201d \u201cestimate,\u201d \u201cproject,\u201d \u201cforecast,\u201d \u201cexpect,\u201d \u201cintend\u201d and similar expressions identify \u201cforward looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward- looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material.
This Preliminary Official Statement and the information contained herein are in a form deemed final by the Corporation for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended (except for omission of certain information permitted to be omitted under Rule 15c2-12(b)(1)). However, the information herein is subject to revision, completion or amendment in a final Official Statement.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET.
SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.
Wednesday, April 9, 2008
(Subject to postponement or cancellation in
accordance with this Official Notice of Sale)
Wednesday, April 23, 2008
(Subject to postponement or cancellation in
accordance with this Official Notice of Sale)
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