- 11 - would include the 1977 and 1979 HGI notes. The audited financial statements of both City and HGI were included in the offering circular. 4. 1979 Issuance of Notes On August 1, 1979, Finance was the named issuer of $50 million of floating rate notes (FR notes) on the Eurobond market, due August 1, 1986. Interest on the FR notes was payable semiannually at a rate equal to one-half percent above the London interbank offered rate for 6-month Eurodollar deposits. The FR 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 Notes, by providing for the payment of additional interest sufficient to make the interest payment equal to the stated rate.5 Finance’s obligations to make principal and interest payments under the FR notes were unconditionally guaranteed by City. On the same day the FR notes were issued, Finance transferred the $50 million proceeds to City. City issued a promissory note to Finance in the principal amount of $50 million (1979 promissory note). As with the 1977 promissory note, the 1979 promissory note provided that the principal amount owed 5 The FR 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