Fitch Rates California Pollution Control Financing Authority 2008A GreenWaste Revs 'A+/F1'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned 'A+/F1' ratings to the California Pollution Control Financing Authority's $17,085,000 variable-rate demand solid waste disposal revenue bonds (GreenWaste Recovery, Inc. Project), series 2008A.

The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Comerica Bank, securing the bonds. The bank is obligated to make payments of principal of and interest on the bonds when due, as well as purchase price for tendered bonds. The rating will expire upon the earliest of (a) Oct. 8, 2013, the stated expiration date of the LOC, unless such date is extended; (b) any prior termination of the LOC; and (c) defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 45 days' interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds. The remarketing agent for the bonds is Westhoff, Cone & Holmstedt. The bonds are expected to be delivered on or about Oct 8, 2008.

The bonds initially bear interest at the weekly interest rate, but may be converted to a term interest rate. While bonds bear interest in the weekly mode, interest payments are the first Wednesday of each month, commencing Nov. 5, 2008. Bondholders have the option to tender their bonds, provided the remarketing agent is given seven days' prior notice of the purchase. The bonds are subject to mandatory tender upon conversion to a term rate mode and upon substitution of the LOC. Optional and mandatory redemption provisions also apply to the bonds.

Bond proceeds will be used by the borrower, GreenWaste Recovery, Inc., a California corporation, to finance: (i) improvements to an existing materials recovery facility; (ii) the construction of a building to house offices and truck maintenance and storage and site improvements; (iii) improvements to a corporate yard to house offices and truck maintenance and storage and site improvements; (iv) improvements to a corporate yard to house recyclables storage area; (v) the acquisition and/or retrofitting of equipment, rolling stock and vehicles for the collection, processing and transfer of solid waste and other equipment; and (vi) the acquisition of drop boxes, bins, carts and containers to be located with customers in the City of San Jose, California and in various incorporated and unincorporated portions of Santa Clara, Sonoma, San Mateo and Santa Cruz Counties, California.

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.