$46 million Measure M debt payment met by OCTA Wednesday

Business Wire, Feb 15, 1995

ORANGE, Calif.--(BUSINESS WIRE)--Feb. 15, 1995--The Orange County Transportation Authority (OCTA) has met its $46 million debt service payment on Measure M bonds, including principal and interest, due Wednesday.

The transaction is the first major debt payment on Measure M bonds since the County Investment Pool declared bankruptcy in December. The funds were released to investors in the normal course of business by OCTA's Trustee, State Street Bank & Trust of California.

OCTA paid bondholders using three months of post-bankruptcy Measure M sales tax receipts that now flow directly to OCTA's Trustee. The receipts totaled approximately $36 million.

Funds also were used from a $3 million draw from the Investment Pool, and the remaining amount came from a debt service reserve fund which will be replenished.

"Paying back our bondholders on time, sustaining operations, and meeting our financial obligations were our first major goals. We're very gratified to achieve this major milestone," said Chief Executive Officer Stan Oftelie. "It's a testimony to OCTA's positive partnerships with the community and teamwork within the agency."

The payment comes on the heels of Moody's Investors Service confirmation of the Authority's credit ratings. Late last week a full credit report and news release reaffirming OCTA's credit ratings confirmation were distributed by Moody's.

CONTACT: Orange County Transportation Authority

Elaine Beno, 714/560-5571