NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AA/F1+' to $55,000,000 Indiana Finance Authority (the authority), lease appropriation bonds (Stadium Project), series 2008 A. Fitch also affirms at 'AA' approximately $3 billion of Indiana's appropriation debt. The Rating Outlook is Stable.The long-term 'AA' rating and Stable Outlook on the above-cited bonds is based on the Authority's long-term credit quality. The short-term 'F1+' rating on the bonds is based on the liquidity support of a standby bond purchase agreement (SBPA) provided severally by: (1) RBS Citizens, National Association, D/B/A/ Charter One, as administrative agent and one of the banks, whose pro rata share of the commitment will be 54.9%; (2) JPMorgan Chase Bank, National Association, with a 31.4% pro rata share, and (3) The Bank of New York Mellon, with a pro rata share of 13.7% of the commitment. The short-term rating will expire on the stated expiration date of the SBPA, July 22, 2011, unless such date is extended, or upon any earlier termination of the SBPA. Fitch's short-term rating expires on the expiration or termination of the SBPA.
The SBPA provides for the payment of the purchase price of tendered bonds during the daily rate modes and in the event the proceeds of a remarketing of the bonds following an optional or mandatory tender are insufficient to pay the purchase price. The SBPA is sized to provide for the entire principal amount of the respective series of bonds that each supports, plus interest coverage of 37 days calculated at a maximum interest rate of 15%, based on a year of 365 days. The Bank of New York Mellon Trust Company, N.A., as trustee, is required to give notice to the bank in the event that remarketing proceeds are insufficient to pay the purchase price for tendered bonds. The remarketing agent for the bonds is JPMorgan Securities Inc. The bonds are expected to be delivered through DTC on or about July 24, 2008.
The bonds initially bear interest in the daily rate, but may also be converted to a weekly, flexible, term, auction or fixed interest rate mode. While the bonds bear interest in the daily rate mode, interest will be payable on the first business day of each month, commencing Aug. 1, 2008. Holders of bonds bearing interest in the weekly or daily rate modes may tender their bonds for purchase upon delivery of prior notice to the remarketing and tender agents.
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