Amend: Fitch Rates New Jersey EDA's (Frisch School) 2006 VRDBs 'AA-/F1+'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This is an amended version of a press release originally issued on May 3, 2006. The expiration dates Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. for both Fitch's rating and CLOC CLOC Center for Learning and Organizational Change CLOC College Light Opera Company (Falmouth, Massachusetts) CLOC Commercial Line of Credit CLOC Canadian Logistics Operation Center CLOC Coalition Logistics Operations Center , along with the usage of the bond proceeds, are being revised accordingly.) Fitch assigns a rating of 'AA-/F1+' to the New Jersey Economic Development Authority's $28,400,000 economic development bonds (The Frisch School The Frisch School, founded in 1972 by Rabbi Menachem Meier and Alfred Frisch, is a coeducational yeshiva (Jewish day school) secondary school located in Paramus, New Jersey, which adheres to the tenets and practices of Modern Orthodox Judaism. -- 2006 Project). The rating is based on the support provided by an irrevocable, direct-pay confirming letter of credit (CLOC) issued by KBC Bank KBC Bank NV is a Belgian universal bank, focusing on private clients and small and medium-sized enterprises. Besides retail banking, insurance and asset management activities (in collaboration with sister companies KBC Insurance NV and KBC Asset Management NV), KBC Bank also , N.V., acting through its New York Branch. The CLOC provides full coverage of principal, interest equal to 45 days calculated at a maximum rate of 10% based on a year of 365 days, plus purchase price. The CLOC expires on May 11, 2011. The underlying irrevocable, direct-pay letter of credit (LOC LOC - lines of code ) is issued by Sovereign Bank, and provides full coverage of principal and interest payments when due, as well as purchase price. The LOC is sized to cover the principal amount, and an amount equal to 45 days of accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. at 10%, based on a 365-day year, and purchase price for tendered bonds. The CLOC will expire on May 11, 2007 with automatic one-year extensions up to the initial expiration of the LOC on May 11, 2011. The remarketing agent for the bonds is Ziegler Capital Markets Group. The bonds are expected to be delivered on or about May 11, 2006. The bonds initially bear interest in the weekly interest rate mode, but may be converted to a flexible or fixed interest rate mode. While bonds bear interest in the weekly interest rate mode, interest is payable on the first business day of each month, commencing June 1, 2006. Bondholders may tender their bonds for purchase on any business day with seven days' prior notice to the trustee during the weekly rate mode. The bonds are subject to mandatory tender on any interest rate change date, on the interest payment date immediately preceding the LOC or CLOC expiration date, and on the effective date of any Alternate LOC or Alternate CLOC. The trustee will draw on the CLOC only if Sovereign Bank fails to honor a draw on its LOC or repudiates its LOC. The CLOC automatically reinstates on the tenth day following an interest drawing unless the trustee receives notice from the bank that such interest component will not be reinstated. The CLOC also reinstates for purchase price draws immediately following reimbursement to the bank. Optional redemption provisions also apply to the bonds. Fitch's rating will expire on the earliest to occur of: May 11, 2007, the scheduled expiration date of the CLOC, unless such date is automatically extended; any prior termination of the CLOC; or defeasance of the bonds. Bonds proceeds will be used to (i) refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. a portion of the costs of the acquisition of land and the acquisition and renovation of an existing 120,000 square foot building thereon, the construction of an approximately 30,000 square foot addition thereto, and the acquisition of machinery and equipment, all to be used as a secondary school, and (ii) paying certain costs and expenses incurred in connection with the issuance of the Bonds. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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