Fitch Rates BBC, LLC Ser 2007 Adj-Rate Rev Bonds 'AAA/F1+'

Business Wire, March 8, 2007

NEW YORK -- Fitch assigns a rating of 'AAA/F1 ' to the $19,000,000 BBC, LLC, adjustable-rate demand taxable revenue bonds, series 2007. The rating incorporates credit enhancement provided by a letter of credit (LOC) issued by Pacific Capital Bank, NA and a confirming letter of credit (CLOC) issued by The Federal Home Loan Bank of San Francisco (FHLBSF). The FHLBSF CLOC provides full coverage of principal, an amount of interest equal to 45 days calculated at a maximum rate of 12% based on a year of 365 days, plus purchase price, and expires on March 20, 2012. The underlying LOC is issued by Pacific Capital Bank, N. A., d/b/a The First National Bank of Central California, and provides full coverage of principal and interest payments due on the bonds, as well as purchase price. The LOC is sized to cover the principal amount, and an amount equal to 45 days of accrued interest at 12%, based on a 365-day year, and purchase price for tendered bonds, and has an expiration date of March 15, 2012. The remarketing agent for the bonds is B.C. Ziegler and Company. The bonds mature on March 1, 2037. The sale is expected to be on or about March 22, 2007.

The bonds initially bear interest at the weekly interest rate, but may be converted to a one-month, three-month, six-month, one-year, five-year, and fixed interest rate. While bonds bear interest in the weekly, one-month and three-month modes, interest is payable on the first business day of each month, commencing April 2, 2007. Bondholders may tender their bonds for purchase on any business day with seven days' prior notice during the weekly rate and on each rate adjustment date for bonds in the one-month, three-month, six-month, one-year or five-year interest rate modes with prior notice to the trustee. The bonds are subject to mandatory tender on the first day of any change in an interest rate period, and on the effective date of any Alternate LOC or Alternate CLOC, and on the interest payment date, which precedes by at least five days the LOC or CLOC expiration date.

The trustee will draw on the CLOC only if Pacific Capital Bank fails to honor a draw on its LOC or repudiates its LOC. Either of these two events constitutes an event of default under the indenture, leading to an immediate acceleration of the bonds. Optional redemption provisions also apply to the bonds.

Fitch's rating will expire on the earliest to occur of the scheduled expiration date of the CLOC (March 15, 2017), unless such date is extended pursuant to the terms of the CLOC; any prior termination of the CLOC; or defeasance of the bonds.

Bond proceeds will be used to finance and reimburse the issuer for the cost of the acquisition, construction, and equipping of certain school facilities located in Sacramento, California.

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