Fitch Rates AMC West Military Housing (California) $270MM Ser A-1a 'AA'; Ser A-1b & A-2 'A'.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 -- Fitch assigns an 'AA' rating to the $196 million AMC (Advanced Mezzanine Card) See AdvancedTCA. West military housing trust (Capmark Military Housing Trust XXXIX) 2008 series A-1a project certificates and a rating of 'A' to both the $37 million 2008 series A-1b and the $36.6 million 2008 series A-2 certificates. The 2008 series A-1a certificates have a term of 47 years, with the first seven years interest only and the remaining (or subsequent) 40 years at level debt service. The 2008 series A-1b certificate will be funded 2 years after closing with a five year interest only period followed by 40 years of level debt service. The 2008 series A-2 certificate proceeds will be used to fund a construction loan maturing March 10, 2015. The construction loan will be paid off by a guaranteed direct loan (GDL GDL Graduated Driver (s) License GDL Graduated Driver Licensing GDL Gas Diffusion Layer GDL Graduate Diploma in Law (UK) GdL Gruppo di Lavoro (Italian) ) from the U.S. Air Force as the new units are completed. The 2008 series A-1a, A-1b and A-2 certificate proceeds will provide funds for loans to privatize family units at the Travis, Tinker and Fairchild Air Force Bases (AFBs); fund the total development costs to build new units and renovate existing units as determined by the U.S. Air Force; fund reserves; and pay costs of issuance. The funds will be used to build 837 new units and renovate 914 family housing units, as well as operate and maintain 684 units built over the last ten years, for a total of 2,435 family housing units. The certificates are secured by a first lien on all receipts of the project, which are predominantly from the basic allowance for housing (BAH), after operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Receipts from the BAH are based on the local rental rates and are an integral part of compensation of US military personnel. Fitch draws comfort from the essentiality of Fairchild, Tinker and Travis Air Force adequacy of BAH payments, and strong demand for housing among base personnel. Structural protections include the GDL by the U.S. Air Force to pay off the construction loan as units become rentable over the seven years that coincide with the major construction, as well as the $13.6 million equity contribution from the developer. After construction, the current property manager will operate and maintain the facilities, which will enhance the financial stability of the project. The major risk limiting the credit quality of the certificates is that in the unlikely event of base closure, there may be very limited demand for civilian use at the Fairchild and Tinker facilities. The 2008 series A-1a and A-1b certificates are structured with a level debt service for their 40 year term after the interest only period. Debt service coverage levels must be maintained at 1.5 times (x), and 1.2x for the 2008 series A1a and the 2008 series A1b, respectively, over the life of the certificates. Debt service coverage is further enhanced by a debt service reserve (DSR (1) (Data Set Ready) An RS-232 signal sent from the modem to the computer or terminal indicating that it is able to accept data. Contrast with DTR. (2) (Dynamic Source R ) funded at one year's maximum annual debt service. The 2008 series A-1a certificate's DSR will be cash funded while it is anticipated the 2008 series A-1b certificates DSR will take the form of a surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. with a provider rated at least 'AA'. The ground lease runs for 50 years. Balfour Beatty Communities (BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. ) (recently acquired GMH GMH General Motors Holden's military housing) will develop and operate the housing units. BBC operates and manages more than 28,000 military units. 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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