Fitch Rates Alaska Housing's $900MM 2007 Series A, C & D Draw Down Bonds.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 Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns an 'AA-' rating to the Alaska Housing Finance Corporation (the Corporation) draw down bonds series 2007 A, C & D. The bonds were authorized on March 1, 2007, along with the 2007 series B bonds, in a total principal amount of $900 million. Any proceeds of the 2007 A, C & D bonds that have been drawn down to date have been invested in an investment agreement provided by Citigroup Financial Products Inc. with a Citigroup Inc guarantee (rated 'AA-/F1+' by Fitch). The bond rating is based on the rating of the parent of the investment agreement provider, as guarantor of the investment agreement, and the structure of the bond transaction as designed by the trust indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. . Currently, there are no 2007 series B bonds outstanding. Any future draw down of 2007 series B bonds would be secured by the general obligation pledge of the Corporation. The Trust Indenture dated March 1, 2007 stipulates that the amount of bonds issued may not exceed $900 million and that no more than $300 million in aggregate principal can be outstanding at any one time. The bonds are being issued to provide funds to refund portions of the Corporation's home mortgage revenue bonds, governmental mortgage revenue bonds and other debt obligations issued to finance programs of the Corporation; and to preserve private activity bond volume cap. Prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. on mortgage loans from other Alaska Housing bond programs will also be deposited in the Bond Escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. Fund under the Indenture and invested in the Investment Agreement. At the time of a draw, bond proceeds, will also be deposited in the Bond Escrow Fund under the Indenture and invested in the Investment Agreement. Bond proceeds are then transferred from the Bond Escrow Fund to various outstanding Corporation programs to redeem bonds. Proceeds from the Investment Agreement are used to satisfy debt service on the Draw Down Bonds. The bonds will only bear interest on the principal amount drawn by the Corporation. The series 2007 A bonds (AMT See vPro. ) will bear interest at a rate equal to the SIFMA SIFMA Securities Industry and Financial Markets Association SIFMA Socialized Industrial Forest Management Agreement Index plus 0.75% and the series 2007 C (Non-AMT) and 2007 D (Non-AMT) will bear interest at a rate equal to the SIFMA Index plus 0.65%. The interest rates on the bonds are payable on the first business day of each calendar month and are in effect up to but excluding March 1, 2011. The Citigroup Investment Agreement will bear interest at a rate equal to SIFMA plus 1.351%. The rate will reset every Thursday. The investment agreement will expire on March 1, 2011. Interest will be paid on the first business day of each month. The Fitch rating will expire upon the expiration of the Investment Agreement on March 1, 2011. At such time, the bonds are subject to mandatory tender. 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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