- 8 - HGI requested and received the consent of each of the banks to the issuance of the 1977 HGI note, as required by the revolving credit agreement. City prepared an offering circular for prospective purchasers of the notes to be sold by Finance in 1977 which disclosed that City’s $13,200,000 capital contribution to Finance would be lent by Finance to HGI and that Finance’s capital thereafter included the 1977 HGI note. The audited financial statements of both City and HGI were included in the offering circular. 2. Finance’s 1977 Issuance of Notes On May 5, 1977, Finance was the named issuer of $30 million of 8-3/4-percent notes on the Eurobond market, due May 1, 1984 (8-3/4-percent notes). Interest on the notes at the stated rate was payable annually. The 8-3/4-percent notes also provided that the issuer would, in general, indemnify the holders with respect to any withholding taxes that might be imposed by the United States or the Netherlands Antilles with respect to the payments under the 8-3/4-percent notes, by providing for the payment of additional interest sufficient to make the interest payment equal to the stated rate.4 Finance’s obligations to make principal and 4 The 8-3/4-percent notes further provided the issuer with a right to redeem in the event that the foregoing additional interest became payable.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011