Fitch Rates Palm Beach County School Board COPs 'AAA/F1+'

Business Wire, June 25, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--June 25, 2003

The $124,295,000 The School Board of Palm Beach County, Florida, Certificates of Participation, Series 2003B, are rated 'AAA/F1+' by Fitch Ratings. The long-term 'AAA' rating on the Certificates of Participation (COPs) is based on the support of a municipal bond insurance policy provided by Ambac Assurance Corporation, which insures scheduled payments of principal and interest on the COPs. The insurance policy will be in effect until the COPs mature on August 1, 2020. The short-term 'F1+' rating on the COPs is based on the liquidity support of a standby purchase agreement (SPA) provided by Dexia Credit Local, acting through its New York Agency. The SPA provides for the payment of the purchase price of tendered COPs while in the weekly, monthly, and quarterly interest rate modes. The SPA provides coverage for the principal portion of the purchase price of tendered COPs and 187 days of interest at the maximum interest rate of 12%, based on a year of 365 days. The short-term rating expires on the earlier of: June 26, 2008, the stated expiration date of the SPA; or the occurrence of certain events of termination, all in accordance with the terms of the SPA. The remarketing agent for the COPs is UBS Financial Services Inc. The sale is scheduled for June 26, 2003.

The COPs initially bear interest at the weekly rate, but may be converted to daily, monthly, quarterly, commercial paper, extended or fixed interest rate mode. Interest is payable on the first business day of each February and August, commencing August 1, 2003, while the COPs bear interest at the weekly rate. While in the daily or weekly rate modes, holders have the option to demand purchase of their COPs on any business day with prior notice to the tender agent and the remarketing agent. The COPs are subject to mandatory tender on: (1) the conversion date (except conversions between daily and weekly modes; (2) the end of each commercial paper rate period; (3) the business day preceding by at least five days (4) any termination or expiration of the SPA; and (5) the date an alternate SPA is delivered as a replacement for the current SPA. The COPs are also subject to optional and mandatory prepayment as specified in the supplemental indenture.

The proceeds of the COPs will be used to finance the acquisition, construction, and installation of certain educational and related facilities to be leased to the School Board and to pay the costs of issuance thereof.