Fitch Rates Denver Urban Renewal Authority's (Colorado) 2008A-2 Stapleton Revs 'AA-/F1+'
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NEW YORK--(BUSINESS WIRE)--
Fitch Ratings has assigned 'AA-/F1+' ratings to the Denver Urban Renewal Authority's $107,000,000 Stapleton senior tax increment revenue bonds, series 2008A-2.
The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by U.S. Bank National Association (the Bank), securing the bonds. The bank is obligated to make regularly scheduled payments of principal of and interest on the bonds and upon acceleration and redemption, as well as purchase price for tendered bonds.
The rating will expire upon the earliest of: (a) April 30, 2011, the initial stated expiration date of the LOC, unless such date is extended; (b) any prior termination of the LOC; and (c) defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 35 days' interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds. The underwriter and remarketing agent for the bonds is RBC Capital Markets. The sale is expected to be on or about June 26, 2008.
The bonds initially bear interest at a weekly interest rate, but may be converted to a daily, unit pricing, term or fixed interest rate mode. While bonds bear interest in the weekly rate mode, interest payments are the first business day of each month, commencing July 1, 2008. During the daily and weekly mode, holders may tender their bonds on any business day, provided the trustee and remarketing agent are given requisite prior notice of the purchase. The bonds are subject to mandatory tender: (1) during a unit pricing mode, on the day after the end of each period; (2) upon conversion of the interest rate; (3) upon expiration, termination or substitution of the LOC; and (4) on optional redemption dates, upon decision of the Authority to purchase bonds in lieu of redemption. Optional and mandatory redemption provisions also apply to the bonds.
Bond proceeds will be used to refund outstanding bonds of the Authority.
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.
Source: Fitch Ratings
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