Fitch Rates $23.7MM Los Angeles Department Of Airports VRDBs 'A+/F1'.
NEW YORK--(BUSINESS WIRE)--Feb. 18, 2003
The $23,700,000 Department of Airports of the City of Los Angeles, California, Los Angeles International Airport subordinate revenue bonds, 2003 series A, are rated 'A+/F1' by Fitch Ratings. The rating assigned to the bonds is based on an irrevocable, direct-pay letter of credit (LOC) severally provided by Bayerische Landesbank, acting through its New York Branch; JPMorgan Chase Bank; and Landesbank Baden-Wurrtemberg, acting through its New York Branch. Pursuant to the LOC, the banks are obligated to make payments of: (1) principal of and interest on the bonds upon maturity, acceleration and redemption, and (2) purchase price for tendered bonds. The rating will expire on the earliest of: (a) April 23, 2005, the stated expiration of the LOC; (b) any prior termination of the LOC; and (c) defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 34 days of interest at a maximum rate of 12% based on a 365-day year and purchase price for tendered bonds. Lehman Brothers Inc. is the remarketing agent for the bonds. The bonds mature on May 15, 2016. The bonds are expected to be delivered on Feb. 26, 2003.
The bonds initially bear interest in a daily interest rate mode, but may be converted to a weekly, bond interest term, long-term, auction or fixed rate mode. While bonds bear interest in the daily and weekly modes, interest is payable on the first business day of each month, commencing March 3, 2003. Holders may tender their bonds on any business day with prior notice while the bonds bear interest in the daily and weekly modes. The bonds are subject to mandatory tender: on the first day of each new interest rate period; on the last day of each bond interest term; and upon termination, expiration or replacement of the LOC. The bonds are also subject to optional and mandatory redemption.
Bond proceeds will be used to reimburse the Department of Airports for capital improvements to Los Angeles International Airport.
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|Date:||Feb 18, 2003|
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