Fitch Rates $513.825MM LIPA Electric System Revs 'AAApre'.
Refunded general revenue bonds consist of the following: $260,800,000 series 1998B, maturing April 1, 2011-2018, which will be redeemed on April 1, 2008 at 101%; $51,090,000 series 2001A, maturing Sept. 1, 2016, 2017, 2019, 2020, 2021 and 2028, which will be redeemed on Sept. 1, 2011 at par; $116,000,000 series 2001-L, maturing May 1, 2033, which will be redeemed on May 1, 2011 at par; and $31,435,000 series 2003C, maturing Sept. 1, 2018, 2019, and 2021, which will be redeemed on Sept. 1, 2013. Refunded subordinated revenue bonds consist of $27,300,000 series 8G, maturing April 1, 2012, which will be subject to mandatory purchase on April 1, 2007 at par, and $27,200,000 series 8H, maturing April 1, 2012, which will be subject to mandatory purchase on April 1, 2008 at par.
The Bank of New York, as trustee, will hold escrowed funds and securities in a segregated irrevocable trust fund for the benefit of refunded bondholders. The escrowed funds are pledged for the purpose of paying interest and redemption price on refunded bonds. The 'AAApre' rating reflects this pledge and that all funds have been invested in direct non-callable obligations of the United States. Any future substitute investment is also limited to direct non-callable obligations of the U.S.
Samuel Klein and Company verified the mathematical accuracy of computations of the adequacy of receipts from the escrowed funds and securities to meet interest and redemption requirements of the refunded bonds, contained in schedules provided to them by Citigroup, underwriter for the refunding bonds. In the opinion of Samuel Klein and Company, anticipated receipts from the cash and securities deposited in the trust fund will be sufficient to pay the interest and redemption requirements of the refunded bonds when due.
The 'AAApre' rating applies to the bonds with the following CUSIP numbers:
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|Date:||Dec 27, 2006|
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