Fitch Rates California Pollution Control Financing Authority (Evergreen Oil) 2006A ‘AA-/F1+’
Fitch assigns a rating of ‘AA-/F1+’ to the $8,450,000 California Pollution Control Financing Authority, Variable Rate Demand Pollution Control Revenue Bonds (Evergreen Oil, Inc. Project), Series 2006A. The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Bank of the West, securing the bonds. The bank is obligated to make payments of principal and interest on the bonds when due, as well as purchase price for tendered bonds. The rating will expire upon the earliest of (a) June 22, 2011, the 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 45 days’ interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds. The remarketing agent for the bonds is Westhoff, Cone & Holmstedt. The bonds are expected to be delivered on or about June 23, 2006.
The bonds initially bear interest at the weekly interest rate, but may be converted to a term interest rate. While bonds bear interest in the weekly mode, interest payments are payable on the first Wednesday of each month, commencing July 5, 2006. Bondholders have the option to tender their bonds, provided the remarketing agent is given seven days’ prior notice of the purchase. The bonds are subject to mandatory tender on (i) conversion to a term rate mode, (ii) substitution of the LOC and (iii) following the trustee’s receipt of notice from the bank of an event of default under the Reimbursement Agreement, directing a mandatory tender. The bank may also direct an acceleration of the bonds upon such an event of default. Optional and mandatory redemption provisions also apply to the bonds.
Bond proceeds will be used by the borrower, Evergreen Oil, Inc., a California corporation, to finance, or reimburse the financing of, the costs of improving and equipping the Borrower’s approximately seven acre solid waste and hazardous waste disposal facilities located in Newark, California.
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.
Contact:
Fitch Ratings, New York
Trudy Zibit, 212-908-0689
Christine Pollak, 212-908-0526 (Media Relations)
Source: Fitch Ratings
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