Fitch Rates California Pollution Control Fin Auth's (Ag Resources III, LLC) VRDBs 'AA-/F1+'
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NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns a rating of 'AA-/F1+' to the $8,350,000 California Pollution Control Financing Authority's variable-rate demand solid waste disposal revenue bonds (VRDBs)(Ag Resources III, LLC Project), series 2004. The rating is based on the support provided by an irrevocable, direct-pay confirming letter of credit (CLOC) issued by CoBank, ACB. The bonds were initially issued with the support of a CLOC provided by KeyBank. On May 19, 2009, the KeyBank CLOC expired and following the mandatory tender under the Farm Credit West, PCA letter of credit the bonds became and still remain bank bonds. On the effective date, Nov. 4, 2009, the CoBank CLOC will provide support for the bonds and the bonds will be released from their current bank bond status.
The CLOC 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. The underlying irrevocable, direct-pay letter of credit (LOC) issued by the Farm Credit West, PCA provides the same coverage as the CLOC. The CLOC will expire on Nov. 4, 2010 unless extended pursuant to the confirming bank's option. Fitch's rating will expire on the earliest to occur of the expiration date of the CLOC, any prior termination of the CLOC 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 fixed 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 Nov. 4, 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 or alternate CLOC. The bonds are subject to mandatory redemption on the interest payment date preceding the expiration date of the LOC or CLOC. Optional and mandatory redemption provisions also apply to the bonds.
Bonds proceeds were used to acquire, construct, install and equip certain solid waste disposal facilities at a dairy facility in Tulare County, California.
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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.
Source: Fitch Ratings
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