NEW YORK - (Business Wire) Fitch Ratings assigns a rating of 'A/F1' to the $11,785,000 (current amount outstanding $11,460,000) Washington Economic Development Finance Authority variable-rate demand solid waste disposal revenue bonds (Heirborne Investments, LLC Project), series 2006K. The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Union Bank, N.A. The bonds were initially issued with the support of an LOC provided by Wells Fargo Bank, N.A. On Sept. 30, 2009, the Wells Fargo Bank LOC expired. Union Bank purchased the bonds and is the current owner of the bonds. On the effective date of Nov. 4, 2009, the Union Bank LOC will provide support for the bonds which will be remarketed to new holders. The LOC provides full coverage of principal, interest equal to 45 days calculated at a maximum rate of 12% based on a year of 365 days, and purchase price. Fitch's rating will expire on the earliest to occur of the stated expiration date of the LOC, Oct. 1, 2014, any prior termination of the LOC, or defeasance of the bonds. The remarketing agent for the bonds is Westhoff, Cone & Holmstedt.
The bonds currently bear interest in the weekly interest rate mode, but may be converted to a term interest rate mode. While bonds bear interest in the weekly interest rate mode, interest is payable on the first Wednesday of each month. The next scheduled interest payment date is Dec. 2, 2009. Bondholders may tender their bonds for purchase on any business day with seven days' prior notice to the trustee during the weekly rate mode. The bonds are subject to mandatory tender upon conversion to the term interest rate mode or on the effective date of any alternate LOC. The bonds are subject to mandatory redemption on the interest payment date preceding the expiration date of the LOC. Optional and mandatory redemption provisions also apply to the bonds.
Bonds proceeds were used to design, construct, acquire and install solid waste disposal facilities consisting of land and a new solid waste disposal transfer station including required electric power, utilities, water, storm water and sewer infrastructure facilities.
Additional information is available at 'www.fitchratings.com'.
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