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| ATAX > SEC Filings for ATAX > Form 8-K on 8-Jul-2008 | All Recent SEC Filings |
8-Jul-2008
Entry into a Material Definitive Agreement, Financial State
On July 7, 2008, America First Tax Exempt Investors, L.P., a Delaware limited partnership (the "Registrant"), entered into an interest rate cap agreement (the "Cap") with US Bank, N.A. Under the Cap, US Bank will make payments to the Registrant on a nominal amount of $60.0 million in the event the Securities Industry and Financial Markets Association ("SIFMA") floating index rate increases above 2.5%. The Cap is intended to partially mitigate the Registrant's risk from changing short-term interest rates on its new Bank of America tender option bond financing arrangement described in Item 1.02 below. Item 1.02 Termination of a Material Definitive Agreement.
On July 3, 2008, the Registrant repaid the entire principal balance and all
accrued interest on a $65.1 million bridge loan from Bank of America, N.A. (the
"Bridge Loan"), the proceeds of which had be used by the Registrant on June 26,
2008 to redeem the senior securities (known as "P-Floats") that had been issued
in connection with the Registrant's previous tender offer bond financing
arrangements through Merrill Lynch, Pierce, Fenner & Smith Incorporated
("Merrill Lynch") and to satisfy certain other obligations of the Registrant in
connection therewith. The funds used by the Registrant were generated from the
sale of certain senior trust securities (known as "Floater Certificates") issued
under a tender option bond financing program entered into by the Registrant with
Bank of America on June 26, 2008 which is a replacement financing arrangement
for the Merrill Lynch P-Float program. The Bridge Loan was provided by Bank of
America to allow the Registrant to redeem the P-Floats according to a
contractual obligation on June 26, 2008 even though the funds from the issuance
of Floater Certificates under the new Bank of America tender option bond
financing arrangement were not available on that date. The terms and conditions
of Bridge Loan and of the Registrant's new tender option bond financing
arrangements are more fully described in the Report on Form 8-K filed by the
Registrant on July 1, 2008.
There is no affiliation between the Registrant, on the one hand, and either
Bank of America, N.A. or US Bank, N.A. on the other hand.
99. Press Release, dated July 8, 2008, issued by Registrant announcing the funding of its new tender option bond financing with Bank of America, N.A.
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