January 10, 2011 by USA Post
Denton Isd, On the effective date of 29 December 2010, the short-term rating assigned by Fitch Ratings will ‘F1 +’ rating on watch for negative $ 46,500,000 on the Denton Independent School District, TX bonds variable rate unlimited tax school building, Series 2005-A.
Action evaluation is related to the provision of an amended agreement and update requirements before purchasing (SBPA) provided by Bank of America NA (BofA, rated ‘A + / F1 +’ on Rating Watch Negative), which, inter alia, extends the expiration date of the SBPA amended to December 27, 2013. The long-term rating continues to be based only on current Fitch rating underlying ‘AA’ on the Denton Independent School District.
On the effective date, the short-term rating of ‘F1 +’ Rating on negative watch will be based on the liquidity support provided by BofA in the form of a modified version SBPA. The amended and restated SBPA provides for payment of the principal component of purchase price plus an amount equal to 270 days of interest computed at a maximum rate of 8%, based on a 365 day year for bonds lodged During the weekly and flexible modes in the event that the proceeds from the resale of the securities are not sufficient to pay the redemption price after a bidding voluntary or mandatory. The amended and restated SBPA will expire December 27, 2013, expiration date, unless such date is extended, the mode conversion at low or fixed duration, or the occurrence of certain events of default that result in a mandatory bid or termination of other events related to the financial obligations resulting from an automatic and immediate termination. The short-term rating will expire upon the expiration or termination prior to the amended SBPA. The short-term rating may be adjusted upwards or downwards on the long-term rating of the bonds or short-term rating of the bank. The agent for the resale of the Bonds is Barclays Capital, Inc.
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