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AUSTIN $100 MILLION COMBINED UTILITY SYSTEM COMMERCIAL PAPER NOTES 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 6 /PRNewswire/ -- The city of Austin, Texas, $100 million combined utility systems commercial paper notes, series A are rated 'F-1+' by Fitch. The rating is based on the 100 percent, irrevocable, direct-pay letter of credit issued by Swiss Bank Corp., set to expire on March 31, 1995.
 The Austin city council has approved the issuance of up to $250 million of commercial paper notes to finance the costs of additions, improvements, and expansions to the city's waterworks, sewer, electric light, and power systems. These notes are bond anticipation notes which the city intends to redeem through the issuance of revenue bonds at a future date.
 To provide security for the notes, Swiss Bank Corp. is issuing its LOC in the principal amount of $100 million. Until the principal amount of the LOC is increased, the city is prohibited from issuing more than $100 million of notes. The LOC will also cover $11.25 million of interest, providing 270 days of coverage at the maximum allowable interest rate. No notes can be issued with maturities over 270 days.
 The structure of the issue is very strong. Swiss Bank Corp. is committed to pay maturing CP under any circumstances, including an event of default under the bond documents or bankruptcy of the issuer. BankAmerica National Trust, the issuing and paying agent, has agreed not to issue any notes if, after issuance, the principal and interest amount of outstanding notes would exceed the amount of the LOC.
 -0- 4/6/93
 /CONTACT: David R. Howard of Fitch, 212-908-0677/


CO: City of Austin, Texas ST: Texas IN: SU: RTG

PS -- NY015 -- 0153 04/06/93 09:39 EDT
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Publication:PR Newswire
Date:Apr 6, 1993
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