Finance Authority of Maine offers to buy back some auction-rate bonds

By Angela McDaniels

Tacoma, Wash., Aug. 24 - Finance Authority of Maine has begun a tender offer for $286.75 million of its auction-rate education loan revenue bonds, according to a notice from the authority.

The offer covers the authority's:

• $58.25 million series 2003A senior bonds due Dec. 1, 2033;

• $44.5 million series 2005A-1 senior bonds due Dec. 1, 2035;

• $44 million series 2005A-2 senior bonds due Dec. 1, 2035;

• $50 million series 2007A-1 senior bonds due Dec. 1, 2037;

• $50 million series 2007A-2 senior bonds due Dec. 1, 2037; and

• $40 million series 2007A-3 senior bonds due Dec. 1, 2037.

Bondholders who wish to tender should specify their desired price, and the amount of bonds offered must be an integral multiple of $50,000 for the series 2003A, series 2005A-1 and series 2005A-2 bonds and an integral multiple of $100,000 for the remaining bonds.

The total amount to be spent in the offer is expected to be $35 million, and the authority will determine how much of this cap it wants to spend on each series of bonds.

For each series, the authority will then select the specific offered bonds that it will purchase sequentially in increasing order of offer price up to the cap for that series.

Holders will also receive accrued interest.

The offer will expire at 5 p.m. ET on Sept. 23, and the settlement date will be Sept. 30.

The tender agent is Bank of New York Mellon Trust Co., NA.

Institutional bondholders can direct questions to offer coordinator Christopher Roney (Croney@famemaine.com).

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