Florida Housing buys back 1993 series A, 1999 series A housing bonds

By Marisa Wong

Milwaukee, Oct. 8 – Florida Housing Finance Corp. announced that it purchased two series of affordable housing guarantee revenue bonds through a remarketing at a purchase price equal to the principal amount, plus accrued interest up to the purchase date.

The issuer bought the bonds following a notice from their liquidity provider that commitments under the liquidity agreements were suspended in the wake of Standard & Poor’s Sept. 30 downgrade of MBIA Insurance Corp.’s rating to BB+ from BBB.

Previously the bonds could be optionally tendered by holders on a weekly basis under the trust indentures. That purchase price is payable from funds drawn under the company’s liquidity facility.

Florida Housing said there have been numerous draws on the liquidity agreements to pay the purchase price of tendered bonds throughout 2009.

In the buyback, Florida Housing purchased the following:

• $23.5 million of its 1993 series A bonds on Oct. 7, with $23.6 million of the bonds held by Florida Housing;

• $9 million of its 1999 series A bonds on Oct. 7, with $9.1 million of the bonds held by Florida Housing; and

• $19.03 million of its 1999 series A bonds on Oct. 8, with $28.13 million of the bonds held by Florida Housing.

Questions may be directed to chief financial officer Barbara Goltz at 850 488-4197 or at Barbara.Goltz@floridahousing.org.

Florida Housing Finance is located in Tallahassee, Fla.

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