NEW YORK -- Fitch Ratings assigns a rating of 'A/F1' to the $6,100,000 North Myrtle Beach Corporate Center, LLC (South Carolina) variable-/fixed-rate secured promissory notes. The rating for the notes is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by The National Bank of South Carolina, securing the notes. The bank is obligated to make payments of principal of and interest upon maturity, acceleration, and redemption, as well as the purchase price for tendered notes. The rating will expire upon the earliest of: Jan. 15, 2010, the stated expiration date of the LOC, unless such date is extended; any prior termination of the LOC; and defeasance of the notes. The LOC provides full coverage of principal plus an amount equal to 43 days' interest at a maximum rate of 12%, based on a 365-day year and purchase price for tendered notes. The remarketing agent for the notes is Synovus Securities, Inc. The notes are expected to be delivered on or about Jan. 26, 2005.
The notes initially bear interest at a variable interest rate, which is set on a weekly basis but may be converted to a fixed interest rate. While notes bear interest in the variable-rate mode, interest payments are the first Thursday of each month, commencing Feb. 3, 2005. During the variable rate, holders may tender their notes on any business day, with at least seven days' prior notice of the purchase. The notes are subject to mandatory tender: on conversion of the interest rate; the date immediately following the expiration of a fixed rate period; the first day of the calendar month in which the stated expiration date of the LOC occurs; 15 days prior to the effective date of any change in the frequency with which or the formula by which the interest rate on the notes is established during a variable-rate period, or the optional tender terms of the notes during a variable-rate period; during the variable-rate mode, the date proposed for delivery of a substitute LOC; during the variable-rate mode, the date designated for mandatory tender by the issuer, with the bank's prior written consent; the date on which either a default or insolvency of the LOC provider occurs. Optional redemption provisions also apply to the notes.
The note proceeds will be used to finance capital improvements used in the business of North Myrtle Beach Corporate Center, LLC, a South Carolina limited liability company.
