Boys & Girls trustee draws on reserve to make Dec. 1 payment on bonds issued in Alaska, Iowa

By Marisa Wong

Madison, Wis., Dec. 6 - Trustee Wells Fargo Bank, NA gave notice that it drew from debt service reserve funds in order to make the Dec. 1 interest payments on $58.865 million of community provider revenue bonds issued by the Alaska Industrial Development and Export Authority and the Iowa Finance Authority.

The Alaska bonds include $39.145 million of series 2007C bonds and $290,000 of taxable series 2007D bonds, and the Iowa bonds include $17.78 million of series 2007A bonds and $1.65 million of taxable series 2007B bonds.

The proceeds of the bonds were originally loaned to the Boys and Girls Family Services obligated group for the refund of prior bonds, the financing of the working capital needs of the obligated group and the acquisition of a residential adolescent psychiatric treatment center in Fairbanks, Alaska.

The obligated group consists of Boys and Girls Home and Family Services, Inc., Boys and Girls Home of Nebraska, Inc., Boys and Girls Home Residential Treatment Centers, Inc., Home Care Services, Inc., Family Services, Inc. and Iowa's Missing and Exploited Children, Inc.

According to the notice, the obligated group failed to make more than partial monthly debt service deposits due in June. The failure to make the monthly payments constitutes an event of default under the indentures of the 2007 bonds.

Wells Fargo previously gave notice about the events of default to holders.

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