- 16 -
County will issue the Refunding Bonds and purchase the
Refunding Series B Secured Note from the Owner Trustee
with the proceeds of the Refunding Bonds, (ii) the
Owner Trustee will prepay the Initial Series B Secured
Note with the proceeds of the sale of the Refunding
Series B Secured Note and Supplemental Rent paid by the
Lessee, (iii) the County will use the funds received
from the Owner Trustee in respect of the prepayment of
the Initial Series B Secured Notes to redeem the Bonds
* * *.
The modified 1985 sale and leaseback detailed the calcula-
tion of petitioner’s annual basic rent obligation in pertinent
part as follows:
(3) the amount of Basic Rent payable on each Basic
Rent Payment Date following such refinancing [of the
1984 tax-exempt bonds] shall be reduced by the amount
of Bond Premium, Owner Participant’s Refunding Transac-
tion Expenses and Lessee’s [petitioner’s] Refunding
Transaction Expenses paid by the Lessee in connection
with such refinancing and not previously taken into
account in any adjustment to Basic Rent plus interest
at the Weighted Average Cost of Capital [8.34 percent],
compounded semi-annually, on any such amounts paid by
the Lessee from the date of payment by the Lessee to
the date of recovery through a reduction in Basic Rent
pursuant to this Clause 3;
(4) after the Lessee has recovered the amounts de-
scribed in paragraph (3) above, the amount of Basic
Rent payable on any Basic Rent Payment Date following
such refinancing shall be reduced by an amount equal to
80% of the difference between the interest that would
have been payable on such Basic Rent Payment Date with
respect to the prepaid Series B Secured Note and the
interest payable on such Basic Rent Payment Date with
respect to the Series B Refunding Note;
As described in the foregoing excerpt from the modified 1985
sale and leaseback, the 1992 amendments did not effect a reduc-
tion in petitioner’s minimum annual basic rent obligation until
the redemption of the 1984 tax-exempt bonds and the issuance of
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011