What is a preliminary official statement (POS)?

The POS is an informational disclosure document released prior to the sale that describes the proposed new issue of bonds prior to final determination of the maturity amounts, interest rates and offering prices/yields. The POS contains preliminary information on the terms and conditions of the bond sale including the purpose, security features, and discloses economic, financial and legal information applicable to the issue. The POS should be used by potential investors to evaluate the structure and credit quality of the transaction.