Fitch Rates Illinois Finance Auth $30.4MM Adj-Rate Revs 'AA-/F1+'

Business Wire,  June 16, 2008  

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NEW YORK -- Fitch Ratings has assigned an 'AA-/F1+' rating to the $30,410,000 Illinois Finance Authority, adjustable rate demand revenue bonds, Illinois Wesleyan University, series 2008. The rating is based on an irrevocable, direct-pay letter of credit (LOC) issued by The Northern Trust Company supporting the bonds.

The bank is obligated to make payments of principal and interest on the bonds when due as well as purchase price for tendered bonds. The rating will expire upon the earliest of: the stated expiration date of the LOC, June 24, 2011, unless such date is extended; any prior termination of the LOC; or defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 35 days' interest at a maximum rate of 12% based on a year of 365 days, and the purchase price for tendered bonds while in the daily and weekly rate modes. The remarketing agent for the bonds is Morgan Stanley. The bonds are expected to be delivered on or about June 24, 2008.

The bonds initially bear interest at a weekly rate, but may be converted to a daily, adjustable, or fixed rate mode. While bonds bear interest in the weekly rate mode, interest payments are paid on the first business day of each month, commencing July 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. Bonds in the daily, weekly, or adjustable rate modes are subject to mandatory tender: on each interest rate mode change date; on each adjustment rate reset date; and upon the substitution, expiration, or termination of the LOC. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used to: (i) refinance taxable debt incurred to redeem the University's series 2003 bonds (ii) make deposits to certain funds required to be maintained by the series 2008 indenture (iii) and pay certain costs incurred relating to the issuance of the bonds including the costs of credit enhancement, refinancing of the taxable debt, and redemption of the series 2003 bonds.

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.

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