Fitch Rates HFDC of Central Texas (The Village at Gleannloch Farms Project) 2006C 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 $20,500,000 HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (The Village at Gleannloch Farms, Inc. Project) Series 2006C, Variable Rate Demand Bonds. 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 Citibank N.A. The CLOC provides full coverage of principal, interest equal to 51 days calculated at a maximum rate of 8% based on a year of 365 days, plus purchase price. The underlying irrevocable, direct-pay letter of credit (LOC LOC - lines of code ) issued by Sovereign Bank, provides the same coverage as the CLOC. The CLOC will expire on Dec. 21, 2007 with automatic one-year extensions at the confirming bank's option up to the initial expiration of the LOC on Dec. 21, 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on the earliest to occur of: the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist.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 defeasance n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond, or contract if some event occurs. DEFEASANCE, contracts, conveyancing. of the bonds. The remarketing agent for the bonds is Ziegler Capital Markets Group. The bonds are expected to be delivered on or about Dec. 21, 2006. The bonds initially bear interest in the weekly interest rate mode, but may be converted to an adjustable 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 Jan. 2, 2007. 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 of the interest rate mode, on the fifth day immediately preceding the LOC or CLOC expiration date, on the business day immediately preceding the effective date of any Alternate LOC or Alternate CLOC, and following notice of non-reinstatement of the interest component or after receipt by the trustee of an event of default notice under the LOC/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 Reimbursement Payment made to someone for out-of-pocket expenses has incurred. to the bank. Optional redemption provisions also apply to the bonds. Bonds proceeds will be used to (i) finance and 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 construction and equipping of a senior living community to be known as the Village at Gleannloch Farms; (ii) fund one or more debt service reserve funds for the benefit of the bonds; (iii) pay a portion of the interest on the bonds; (iv) provide working capital; and (v) pay certain 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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