Fitch Ratings assigns a rating of 'AA-/F1+' to $46,145,000 Broward County, Florida subordinate port facilities refunding revenue bonds, series 2008 (Port Everglades). The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by the Bank of Nova Scotia, acting through its New York Agency (Bank), securing the bonds. The bank is obligated to make payments of principal and interest when due, as well as the purchase price for tendered bonds. The rating will expire upon the earliest of: the stated expiration date of the LOC, July 8, 2011, 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 56 days' interest at a maximum rate of 15%, based on a 365-day year, and the purchase price for tendered bonds. The remarketing agent for the bonds is Morgan Keegan & Company, Inc. The bonds are expected to be delivered on or about July 10, 2008.
The bonds initially bear interest at the weekly rate mode; interest payments are made on the first business day of each month, commencing Aug. 1, 2008. The bondholders may tender their bonds on any business day, provided the trustee is given required prior notice of the purchase. The bonds are subject to mandatory tender upon conversion of interest rate and upon expiration, substitution, or termination of the LOC. Additional mandatory and optional redemption provisions also apply to the bonds.
The bond proceeds will be used to currently refund the County's subordinate port facilities refunding revenue bonds, series 1998.
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:
Marina Kaganovskaya, 212-908-0803
or
Media
Relations:
Christopher Kimble, 212-908-0226
