Fitch assigns an 'AA-/F1' to the $5,790,000 JBR, Inc. taxable variable/fixed rate demand bonds, series 2008. The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by U.S. Bank 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, Sept. 10, 2013, unless such date is extended; any prior termination of the LOC; and 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 365-day year. The remarketing agent for the bonds is Gates Capital Corporation. The bonds are expected to be delivered on or about Sept. 10, 2008.
The bonds initially bear interest at the floating rate mode, but may be converted to a daily, adjustable or fixed interest rate mode. While bonds bear interest in the floating rate mode, interest payments are made on the first business day of each month, commencing Oct. 1, 2008. During the floating 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 conversion of the interest rate mode or substitution of the LOC, The bonds are subject to mandatory redemption upon expiration of the LOC. Other optional and mandatory redemption provisions also apply to the bonds.
The bond proceeds will be used to finance a portion of the cost of (1) acquiring and renovating an approximately 216,000 square foot facility located in Lincoln, California, and for acquiring and installing manufacturing equipment at such location.
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.
Contacts:
Mario Civico, 212-908-0796
Cindy Stoller,
212-908-0526 (Media Relations)
