NEW YORK - (Business Wire) Fitch Ratings assigns a rating of 'AA/F1+' to the $20,290,000 Southeastern California Conference of Seventh-Day Adventist adjustable rate demand taxable revenue bonds, series 2008. The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Bank of America, N.A securing the bonds (the long-term 'AA' rating of Bank of America is on Rating Watch Negative as of March 7, 2008). The bank is obligated to make payments of principal and interest when due, as well as purchase price for tendered bonds. The rating will expire upon the earliest of: the stated expiration date of the LOC, June 19, 2011, unless such date is extended; any prior termination of the LOC; and defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 34 days' interest at a maximum rate of 12% based on a 365-day year. The remarketing agent for the bonds is Ziegler Capital Markets Group. The bonds are expected to be delivered on or about June 19, 2008.
The bonds initially bear interest at the weekly rate mode, but may be converted to a fixed interest rate mode. While bonds bear interest in the weekly rate mode, interest payments are made on the first business day of each month, commencing July 1, 2008. During the weekly rate, bondholders may tender their bonds on any business day, provided the trustee is given seven days' prior notice of the purchase. The bonds are subject to mandatory tender upon the expiration, termination, or substitution of the LOC and upon conversion of the interest rate mode. Optional redemption provisions also apply to the bonds.
The bond proceeds will be used to finance or refinance certain church and / or educational facilities of the Issuer.
Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Mario Civico, +1-212-908-0796
Christopher Kimble, +1-212-908-0226 (Media Relations)
