Printer Friendly

SAN JOSE RDA (CALIF.) $700 MILLION TAX ALLOCATION REFUNDING BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 30 /PRNewswire/ -- The Redevelopment Agency of the City of San Jose, Calif.'s $700 million in Merged Project Area Tax Allocation Bonds, Series 1993 are rated 'A' by Fitch. The credit trend is stable. The bonds will be sold through negotiation by a syndicate led by Merrill Lynch & Co. on or about Wednesday Dec. 2. The bonds are secured by a pledge of and first lien on tax increment revenues of the agency, generated from the Merged Area Redevelopment Project, net of the required 20% set-aside for low and moderate income housing. A portion or all of the issue may be sold with insurance.
 The 'A' rating reflects the size and scope of the Merged Area Redevelopment Project, the city's central geographic location in "Silicon Valley," strong debt service coverage from tax increment revenues and a history of extremely well managed redevelopment activity, resulting in strong growth in the incremental assessed value. The significant presence of IBM Corp. as a major taxpayer, accounting for 21% of the incremental assessed value, is a concern.
 The Merged Area Redevelopment Project covers a large, 7,455-acre area of primarily industrial facilities and land in San Jose, the center of Silicon Valley. Having a total assessed value of $7.2 billion and an incremental value of $6.5 billion, it is one of the largest redevelopment project areas in the state. The major businesses located there are high tech manufacturing companies, producing a variety of products, including semiconductors, computers and defense related electronic components and instrumentation. Additionally, there remains more than 1,800 acres of vacant developable industrial property in the project area.
 -0- 11/30/93
 /CONTACT: David C. Pink, 212-908-0678 or Amy S. Doppelt, 212-908-0514, both of Fitch/


CO: ST: California IN: SU: RTG

WB -- NY116 -- 8970 11/30/93 18:28 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 30, 1993
Words:304
Previous Article:UAL STATEMENT ON UNION DISCUSSIONS
Next Article:D&P: FUND AMERICA INVESTORS CORP. II $45,634,931 B FIRST ADJUSTABLE RATE MORTGAGE SENIOR/SUBORDINATE PASS-THROUGH CERTIFICATES, SERIES 1993-H

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters