2008-09-02 23:38:03 -
- Fitch assigns an 'A/F1' to the Washington Economic Development Finance Authority (Belina Interiors, Inc. Project) tax-exempt variable rate economic development revenue bonds consisting of:
--$1,110,000 series 2003F;
--$970,000 series 2003G;
--$1,400,000 series 2008E;
--$100,000 series 2008F.
The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by
KeyBank National Association, securing the bonds. 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, September 4, 2013, which date shall be automatically extended for one year periods unless the bank gives prior notice of non-extension; any prior termination of the LOC; and defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 45 days' interest at a maximum rate of 10% based on a 365-day year. The remarketing agent for the bonds is Gates Capital Corporation. The 2003 bonds are to be remarketed on September 4, 2008 and the 2008 bonds are expected to be delivered on or about September 4, 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 October 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 substitution of the LOC and upon conversion of the interest rate mode. The bonds are subject to mandatory redemption upon expiration of the LOC, and upon an event of default under the reimbursement agreement. Other optional and mandatory redemption provisions also apply to the bonds.
The 2003 bonds were originally issued in October of 2003 to pay the cost of or reimburse the borrower for financing the cost of acquisition, construction, rehabilitation and equipping of a yacht interiors manufacturing facility to be located and to refinance certain outstanding indebtedness with respect to certain real and personal property located in Tacoma, Washington. The series 2008 bonds are being issued to pay the cost of or reimburse the borrower for financing the cost of the acquisition, rehabilitation and equipping of a manufacturing facility and the rehabilitation of existing manufacturing facilities which are located in Pierce County, Washington.
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
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