Alameda PFA, CA, Rev Bnds Rated AAA/F1+ By Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Sept. 21, 1999-- $10,000,000 Alameda Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. Public Financing Authority variable rate demand revenue bonds 1999 series A (Alameda Point and City of Alameda Improvement Project) are rated `AAA/F1+' by Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals , Inc. The rating is based on the support provided by a confirming letter of credit (Confirming LOC LOC - lines of code ) issued by the California State Teachers' Retirement System (STRS STRS State Teachers Retirement System STRS Sir Thomas Rich's School (UK) STRS Stimulated Thermal Rayleigh Scattering STRS Supplier Test Report System STRS Straight Talk Retirement System (software) ). The STRS Confirming LOC provides full coverage of principal plus 119 days' interest at 12% based on a 365-day year. The underlying letter of credit (LOC) is issued by Union Bank of California Union Bank of California is one of the 30 largest commercial banks in the United States. It has 327 branches, the majority of which are in San Diego, Los Angeles and Orange Counties. , N.A. and provides full coverage of principal plus 119 days of interest to cover the weekly interest rate mode at a rate of 12% based on a 365-day year. The LOC also covers purchase price for tendered bonds and will expire on September 21, 2004. The trustee will draw on the STRS Confirming LOC in the event Union Bank of California, N.A. fails to honor any draw on its LOC or the trustee has knowledge that Union Bank of California, N.A. is insolvent INSOLVENT. This word has several meanings. It signifies a person whose estate is not sufficient to pay his debts. Civ. Code of Louisiana, art. 1980.. A person is also said to be insolvent, who is under a present inability to answer, in the ordinary course of business, the responsibility . Either event results in a mandatory tender of the bonds within seven days and requires that the trustee draw only on the STRS Confirming LOC to make payment. Fitch IBCA's rating will expire on the earliest to occur of (1) Sept. 22, 2002, unless such date is extended pursuant to the terms of the confirming LOC, (2) any prior termination of the Confirming LOC, or (3) defeasance defeasance n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond, or contract if some event occurs. DEFEASANCE, contracts, conveyancing. of the bonds. The interest rate is set at a weekly rate determined by J.P. Morgan Securities Inc., as remarketing agent, and interest is paid on each March 1, June 1, Sept. 1, and Dec. 1. While bonds bear interest in a weekly rate mode, holders may tender their bonds for purchase on any business day following seven days' prior notice. During the weekly mode, bonds are subject to optional redemption at par on any interest payment date. Bonds are also subject to mandatory sinking fund sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid redemption and mandatory tender (1) upon fixed rate conversion, (2) within seven days after notice of an event of default under the Reimbursement Agreement or nonreinstatement of interest under the LOC, (3) upon a substitution of the LOC or the Confirming LOC which would result in the reduction or withdrawal of Fitch IBCA's rating on the bonds, and (4) within seven days after Union Bank of California, N.A. receives notice from STRS of an Event of Termination. Bond proceeds will be used to provide funds for capital improvements to Alameda Point and the City of Alameda. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion