Fitch Rts CPCFA VRDBs - Agrifab, Inc. Project - Ser 2003 'AAA/F1+'.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 20, 2003 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 a 'AAA/F1+' rating to the $5.8 million California Pollution Control Financing Authority, variable-rate demand solid waste disposal revenue bonds (Agrifab, Inc. Project), series 2003. The rating is based on the support provided by a 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 California State Teachers' Retirement System (STRS STRS State Teachers Retirement System STRS Sir Thomas Rich's School (UK) STRS Stimulated Thermal Rayleigh Scattering STRS Supplier Test Report System STRS Straight Talk Retirement System (software) ), a unit of the State of California securing the bonds. The STRS 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, plus purchase price, and expires on August 27, 2006. The underlying letter of credit (LOC LOC - lines of code ) is issued by Citizens Business Bank, and provides full coverage of principal and interest payments due on the bonds during the weekly interest rate mode, as well as purchase price. The LOC is sized to cover the principal amount, and an amount equal to 45 days of accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. at 12%, based on a 365-day year, and purchase price for tendered bonds, and has an expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist.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 August 27, 2008. The Remarketing Agent for the bonds is Westhoff, Cone & Holmstedt. The bonds mature on August 1, 2028. The sale is expected to be on or about August 27, 2003. The bonds initially bear interest at the weekly interest rate, but may be converted to a term rate. While bonds bear interest in the weekly mode, interest is payable on the first Wednesday of each month (or the next business day if such Wednesday is not a business day), commencing Sept. 3, 2003. Bondholders may tender their bonds for purchase on any business day with seven days' prior notice during the weekly rate. The bonds are subject to mandatory tender on the first day of any change in an interest rate period, and during the weekly rate, on the effective date of any Alternate Letter of Credit or Alternate Credit Facility, as such terms are defined in the 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. . The trustee will draw on the CLOC only if Citizens Business Bank fails to honor a draw on its LOC or repudiates its LOC. Either of these two events constitutes an event of default under the Indenture, leading to an immediate acceleration of the bonds. Expiration or termination of the CLOC or the LOC results in a mandatory redemption at least five days before the scheduled expiration date of the then current CLOC or LOC, unless the expiring or terminating facility is renewed or replaced with an Alternate LOC or Alternate Credit Facility. Optional and additional mandatory redemption provisions also apply to the bonds. Fitch's rating will expire on the earliest to occur of: (1) the scheduled expiration date of the CLOC, August 27, 2006, unless such date is extended pursuant to its terms.; (2) any prior termination of the CLOC; or (3) 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. Bond proceeds will be used by the Borrower, Agrifab, Inc., a California corporation, to finance the acquisition, construction and equipping of certain solid waste disposal facilities at a dairy farm in Fresno County, California Fresno County is a county located in the Central Valley of the U.S. state of California, south of Stockton and north of Bakersfield. As of 2007, its population was 1,002,284. The county seat is Fresno. . |
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