Fitch Rates Illinois Fin Auth CP Notes 'F1+'

Business Wire, Jan 3, 2008

NEW YORK -- Fitch Ratings assigns a rating of 'F1 ' to the Illinois Finance Authority (the Authority) commercial paper revenue notes (DePaul University Financing Program) in a principal amount not to exceed $75,000,000 (the notes). The rating on the notes is based on the support of a direct-pay letter of credit (LOC) provided by U.S. Bank National Association. DePaul University (the University) expects to issue an initial amount of approximately $25,000,000 in aggregate principal amount of notes on the closing date, which is scheduled to occur on or about Jan. 9, 2008. The original stated amount of the LOC will cover the principal amount of notes initially issued and an interest component corresponding to 90 days of interest on such principal amount, computed at a maximum rate of 10% per annum based on a year of 365 days. The LOC may be increased to cover up to a maximum aggregate principal amount of $75,000,000 and an interest component corresponding to 275 days of interest on such principal amount, calculated at a maximum rate of 10% per annum, based on a year of 365 days. Goldman, Sachs & Co. is the dealer for the notes. The rating on the notes expires on the earlier of Jan. 6, 2009, the LOC stated termination date, unless such date is extended, or any prior termination of the LOC.

Deutsche Bank National Trust Company, as Trustee and Issuing and Paying Agent, will draw on the LOC at the times and in amounts that are sufficient to provide for the timely payment of the principal and interest on maturing notes. The notes will be issued at par, with interest due at maturity. The Trustee is instructed not to issue any notes that, together with notes then outstanding, will exceed the amount available under the LOC to pay the principal and interest amount due on all such notes at maturity. Following the occurrence of an event of default under the Reimbursement Agreement, the LOC bank may direct that no additional notes be issued. If the bank does deliver a notice to the trustee directing a stop issuance of any new notes, the bank also may direct the Trustee to draw in full on the LOC, and hold such moneys in specified funds in order to provide for payment of principal and interest due on the notes on their scheduled maturity dates. Alternatively, the LOC bank may elect to keep the LOC in place following a notice to stop issuing new notes and permit outstanding notes to be supported by draws on the LOC until they are paid on their scheduled maturity dates. Upon an event of default, the trustee is permitted to accelerate the maturity of the notes, but only upon a request by the owners of all the outstanding notes. In the event of such an acceleration, the Trustee is required to immediately draw on the LOC to pay all principal and interest due to, but not including, the date of payment upon such acceleration.

The proceeds of the notes will be loaned by the Authority to DePaul University for the purpose of financing or refinancing certain capital improvement projects of the University.

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.