Ohio County, W.Va., revises $99 million series 2006A, 2006B bonds

By Devika Patel

Knoxville, Tenn., March 16 - The County Commission of Ohio County in West Virginia said it has amended its $81 million in series 2006A special district excise tax revenue refunding and improvement bonds and its $18 million in series 2006B special district excise tax revenue refunding and improvement bonds.

Effective March 1, the series 2006A bonds were separated into two subseries: $68 million in series 2006A-1 bonds and $13 million in series 2006-2 bonds, and the mandatory sinking fund redemption schedule for these bonds was revised to provide for substantially level debt service on the bonds.

The additional bonds test was changed from a 150% projected debt service coverage test to a 125% historical debt service coverage test.

The county also revised the definition of projected debt service coverage ratio, used for the issuance of subordinated bonds, to include projected revenues from large publicly traded companies that construct and own their own facilities and from amusement parks, and increased the maximum principal amount of bonds that may be issued under the indenture to $300 million.

The amendment also allows funds to be transferred from either the revenue fund or the taxable reserve account to the trustee to make current payments, to make up any deficiencies in the applicable reserve fund and to make up any deferred payments. This may only be done if current bond payments have been made and the debt service coverage ratio for the preceding year was 1.5:1.

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