Fitch Rtes Palm Beach Cnty Ed Facils Auth , FL, Ser 2008 'AA/F1+'

Business Wire, June 24, 2008

NEW YORK -- Fitch Ratings assigns a rating of 'AA/F1+' to the $41,000,000 Palm Beach County Educational Facilities Authority educational facilities revenue bonds (Palm Beach Atlantic University, Inc. Project) series 2008. The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Bank of America, N.A. (rated 'AA/F1+', the long-term 'AA' is on Rating Watch Negative), securing the bonds. The bank is obligated to make payments of principal and interest when due, as well as the purchase price for tendered bonds. The rating will expire upon the earliest of: July 15, 2011, the stated expiration date of the LOC, unless such date is extended; any prior termination of the LOC; and 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 365-day year and the purchase price for tendered bonds. The remarketing agent for the bonds is Banc of America Securities LLC. The bonds are expected to be delivered on or about July 3, 2008.

The bonds initially bear interest at the weekly rate, but may be converted to a fixed or flexible interest rate. While bonds bear interest in the weekly rate, interest payments are due on the first business day of each month, commencing Aug. 1, 2008. During the weekly rate, bondholders may tender their bonds on any business day, with seven days' prior notice of the purchase. The bonds are subject to mandatory tender upon conversion of the interest rate and upon substitution or termination of the LOC. Mandatory and optional redemption provisions also apply to the bonds.

The bond proceeds will be used to finance and refinance a portion of the cost of acquiring, constructing, improving, and equipping post-secondary educational facilities to be owned and operated by Palm Beach Atlantic University, Inc. and refunding the authority's educational facilities revenue bonds (Palm Beach Atlantic College Project), series 2001.

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.