Fitch Rates California Enterprise Dev Auth (Community Hospice) 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 -- Fitch assigns a rating of 'AA-/F1+' to the $5,200,000 California Enterprise Development Authority variable-rate demand revenue bonds (Community Hospice, Inc. Project), series 2006. The rating is based on the support provided by an irrevocable, direct-pay confirming letter of credit (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 ) issued by The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. . The CLOC provides full coverage of principal, interest equal to 45 days calculated at a maximum rate of 12% based on a year of 365 days, and purchase price. The underlying irrevocable, direct-pay letter of credit (LOC LOC - lines of code ) issued by the Bank of Stockton, provides the same coverage as the CLOC. The CLOC will expire on Nov. 15, 2007 with automatic annual extensions at the confirming bank's option until Nov. 30, 2011. Fitch's rating will expire on the earliest to occur of the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist.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. of the CLOC, any prior termination of the CLOC or defeasance of the bonds. The remarketing agent for the bonds is Gates Capital Corporation. The bonds are expected to be delivered on or about Nov. 16, 2006. The bonds initially bear interest in the weekly interest rate mode, but may be converted to a 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 Dec. 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 upon conversion to the fixed interest rate mode or on the effective date of any alternate LOC or alternate CLOC. The bonds are subject to mandatory redemption on the 15th day preceding the expiration date of the LOC or CLOC. Optional redemption provisions also apply to the bonds. The trustee will draw on the CLOC only if the Bank of Stockton fails to honor a draw on its LOC or repudiates its LOC. The CLOC automatically reinstates on the day of an interest drawing unless the trustee receives notice from the bank on such date that such interest component will not be reinstated. The CLOC also reinstates for purchase price draws immediately following reimbursement to the bank. Bonds proceeds will be used to finance or 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. the costs of construction of an administrative facility and a hospice facility. 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion