The
prior lien bonds had a first mortgage and the general lien bonds a second mortgage on millions of acres of land and mineral rights.
Proceeds will be used to refund approximately $108 million
prior lien bonds, to pay for various utility capital improvements, and pay issuance costs.
Also incorporated into the rating is the presence of substantial available reserves which could be tapped to cover any revenue shortfalls and the potential for additional issuances of
prior lien bonds.
25% unified sales tax, less a small portion of revenues dedicated to
prior lien bonds, and a first lien on revenues deposited into the Bond Retirement and Interest Fund (BIBRI).
A debt service guarantee for TMPA's
prior lien bonds, contained in the PSCs since 1976, requires members to scale up their respective proportions of debt service payments to cover any defaulting member's share.
75% of the state's share of total revenues dedicated to
prior lien bonds, and a first lien on revenues deposited into the Bond Retirement and Interest Fund (BIBRI).
8 million in outstanding (pre-refunding)
prior lien bonds at 'AA+';
The pledge of 7% general HOT revenues to the series 2008 bonds will be subordinate to the pledge on the
prior lien bonds remaining outstanding upon refunding completion.
The 2008 bonds are payable on a subordinated basis to outstanding Energy Northwest
prior lien bonds.
Upon the refunding of the
prior lien bonds from the 2007 transaction, the general ordinance will become the senior and governing lien.
The 2007 bonds are payable on a subordinate basis to outstanding Energy Northwest
prior lien bonds.
Solid financial management has enabled solid debt service coverage for its
prior lien bonds, equal to 3.
