Fitch Marist College Civic Facility $20MM Series 2008A 'A/F1'

Business Wire, Jan 22, 2008

NEW YORK -- Fitch Ratings assigns an 'A/F1' rating to the $20,000,000 Dutchess County Industrial Development Agency variable rate demand Civic Facility Revenue Bonds (Marist College Civic Facility), Series 2008A. The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by KeyBank National Association (the bank), securing the bonds. The bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The rating will expire upon the earliest of: (a) Jan. 25, 2009, the initial 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 Underwriter and Remarketing Agent for the bonds is Morgan Stanley & Co. Inc. The sale is expected to be on or about January 25, 2008.

The bonds initially bear interest at a weekly interest rate, but may be converted to a fixed interest rate mode. While bonds bear interest in the weekly rate mode, interest payments are the first business day of each month, commencing Feb. 1, 2008. Holders may tender their bonds on any business day, provided the tender agent is given at least seven calendar days' prior notice of the purchase. The bonds are subject to mandatory tender: (1) on the date of conversion of the bonds to a fixed rate; (2) 10 days prior to expiration of the LOC; (3) on the business day following receipt of notice by trustee of expiration or termination of the LOC without provision for a substitute LOC; and (4) on the business day following receipt by the trustee of a notice from the bank of an event of default under the reimbursement agreement and requesting a mandatory tender of the bonds. Alternatively, upon such an event of default, the bank has the option to direct the trustee to accelerate the bonds. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used by Marist College to finance the costs of constructing and equipping a student housing townhome complex on the Marist College East Campus.

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