Definitions

Definitions

Types of Bonds

The City issues enterprise revenue, leasehold revenue, and general obligation bonds. For more information on those bonds see the Credit-Specific pages.

How to Purchase

Please go to How To Buy St. Louis Bonds for information on purchasing bonds in the primary and secondary markets.

How Bonds are Issued

The City’s fixed-rate bonds are generally issued in $5,000 denominations as fully registered in book-entry bonds, without physical certificates or coupons. Bond transactions are recorded in electronic computerized book-entry form by the Depository Trust Company ("DTC"), a New York limited purpose trust company and member of the Federal Reserve System. DTC is a registered clearing agency under the Securities Exchange Act of 1934 and holds securities for participants.

Purchase of book-entry bonds under the DTC system must be made by or through Direct Participants (securities brokers, dealers, banks, trust companies, clearing corporations, and certain other organizations) who will receive a credit for the bonds on DTC’s computerized records. The Direct Participants or indirect participants (securities brokers, dealers, banks, trust companies, clearing corporations, and certain other organizations purchasing securities from Direct Participants or other indirect participants) are in turn responsible for keeping accurate records of their individual clients' holdings and issuing written transaction confirmations and periodic account statements to the individual clients. Under this system, individual bondholders do not receive physical certificates representing their ownership of the bonds, but should receive account statements of their holdings from their securities broker.

Final Official Statement

An official statement ("OS") is the document prepared by The City of St. Louis for use by the underwriting syndicate in the initial offering of its bonds for sale to the public. The OS contains the relevant information about the City and the bonds being issued and includes important information that a potential investor should consider before purchasing the bonds. The OS provides the terms of the bonds, such as maturity and interest rates, an explanation of the security and pledge of revenues supporting the bonds, as well as the other investment considerations you should take into account before buying the bonds.

Because the OS speaks only as of its date, the information will not be current as of the date of any secondary market purchase.

Preliminary Official Statement

A preliminary version of an official statement is made available prior to the sale date. The issuer replaces the preliminary official statement ("POS") with a final official statement ("OS") on the sale date. Not all final official statements are preceded by preliminary official statements.

Pricing Date

The pricing date is the date on which the underwriting syndicate establishes the final coupon rate, yield and price for each maturity of an issue. During the Retail Order Period and on the pricing date, an investor can place an order to purchase the bonds as part of the primary market offering.

Sale Date

The sale date is the date on which the City of St. Louis and the underwriting syndicate agree in writing on the interest rate, yield and price for each maturity of an issue of bonds.

Depository Trust Company (DTC)

The Depository Trust Company ("DTC") is a New York limited purpose trust company and member of the Federal Reserve System. DTC is a registered clearing agency under the Securities Exchange Act of 1934. DTC holds securities for participants.

Purchase of book-entry bonds under the DTC system must be made by or through Direct Participants (securities brokers, dealers, banks, trust companies, clearing corporations, and certain other organizations) who will receive a credit for the bonds on DTC’s computerized records. The Direct Participants or indirect participants (securities brokers, dealers, banks, trust companies, clearing corporations, and certain other organizations purchasing securities from Direct Participants or other indirect participants) are in turn responsible for keeping accurate records of their individual clients' holdings and issuing written transaction confirmations and periodic account statements to the individual clients. Under this system, individual bondholders do not receive physical certificates representing their ownership of the bonds, but should receive account statements of their holdings from their securities broker.

Locating Preliminary Official Statements, Final Official Statements or Disclosure Information

Preliminary official statements for current bond offerings:

The City of St. Louis posts Requests For Proposals for upcoming bond offerings on its website; this generally serves as the first public announcement of an upcoming offering.

For printed copies, contact your broker, investment advisor, or visit the Municipal Securities Rulemaking Board - Electronic Municipal Market Access website. You also may contact our Investor Relations Team to request printed copies.

Final official statements for bonds that have already been issued:

For electronic copies, go to Credit Specific Information and then click on the specific credit you are interested in (e.g. General Obligation, Airport Revenue Bonds, Leasehold Revenue Bonds, etc.) to find links to the related official statements.

The Municipal Securities Rulemaking Board ("MSRB") gathers official documents and trade data relating to municipal securities, and makes them available to the public for free on its Electronic Municipal Market Access ("EMMA") web site, www.emma.msrb.org. EMMA makes available to the public free copies of official statements received since 1990 by the MSRB from underwriters of municipal securities. EMMA also provides free access to price data for municipal securities trades reported to the MSRB since January 31, 2005. The MSRB is responsible for its own web site and information.

Continuing Disclosure Information for bonds that have already been issued:

You also may use the MSRB's EMMA web site to access continuing disclosure information (see above).

Continuing Disclosure Information

Continuing disclosure information consists of certain disclosure updates that the City of St. Louis provides on an ongoing basis after the bonds are sold in the primary market. In addition, continuing disclosure information, in the form of material events notices, can also notify investors of certain important events, such as principal and interest payment delinquencies, credit rating changes, modifications to bondholders' rights, etc.

Continuing disclosure information can be accessed at the Municipal Securities Rulemaking Board's Electronic Municipal Market Access ("EMMA") website www.emma.msrb.org. The Municipal Securities Rulemaking Board is responsible for its own website and the information provided there.

First Interest Payment Date

The first interest payment date is the date on which the issuer first pays interest on the bonds. The first interest paid will be prorated according to the number of days from the dated date of the bonds.

First Principal Payment Date or First Maturity Date

The first principal payment or the first maturity date is the date on which the issuer first begins to pay or amortize principal on the debt it has incurred.

Compound Interest Bond

A compound interest bond is a zero-coupon bond (i.e., no current interest is paid.) Instead, interest accrues on principal and on previously accrued interest until maturity, when all principal and accrued interest is paid.

Senior Book-Running Manager and Responsibilities

The senior book running manager is the leader of the underwriting team in a negotiated sale of bonds in a primary market offering. The senior book running manager along with the co-managers determine the preliminary pricing of the bonds. The team submits orders to the senior book running manager. Once the pricing is completed, the senior book running manager then allocates the bonds to the other members of the underwriting team.

Co-Manager

A co-manager assists in marketing and selling the debt issue, provides marketing and sales assistance to the senior manager and shares the underwriting risk.

Credit Rating

A credit rating is a measure of the credit quality and safety of a bond as assessed by a nationally recognized rating agency, based on the issuer's financial condition. More specifically, it is an evaluation indicating the likelihood that a debt issuer will be able to meet scheduled interest and principal repayments.

Credit Rating Agency

A credit rating agency is a company that evaluates credit risk and provides credit ratings. The City of St. Louis' bonds are generally rated by Standard & Poor's Ratings Services, Moody's Investors Service, Inc., and/or Fitch Ratings.

Current Ratings on St. Louis Bonds

The credit ratings for General Obligation Bonds (unenhanced) of the City of St. Louis as of May 31, 2018 are as follows:

For credit ratings for other, non-General Obligation City Bonds, please contact the rating agencies directly or your broker. Please note that not all City bonds are rated by all three credit rating agencies.

Holding a Bond Until It Matures

No. While holding the bond until final maturity provides you, the investor, with the amount you anticipated receiving, you may sell it to another person or entity through the broker-dealer. Should you decide to do this, the sale will be based on the market price for the bond at that time, and you may not receive the entire principal amount that you paid for the bond should interest rates have risen during the period that you owned it. You may wish to discuss the sale of the bond with your brokerage firm or investment advisor.

Brokerage Account

A brokerage account is an account with a broker-dealer that allows individuals to purchase stocks, bonds, mutual funds, and other investments.

Primary and Secondary Market

The primary market refers to the purchase of bonds when they are first issued. The secondary market refers to the purchase and sale of bonds after they have been issued. There is no exchange (like the New York Stock Exchange) for municipal bonds. Purchases and sales are made "over the counter" by municipal broker-dealers.

If you have additional questions, please contact our Investor Relations Team.

Contact Information

You may contact the City of St. Louis' Investor Relations Team or the trustee or the registrar and paying agent for your bonds.