NEW YORK — Fitch Ratings currently maintains ratings as listed below on student
loan asset-backed securities issued by Brazos Student Finance
Corporation (BSFC) under an Indenture dated as of April 1, 2003 (the
Indenture), between BSFC and U.S. Bank National Association, as Trustee.
BSFC has requested that Fitch confirm its existing ratings on the
securities issued under the Indenture upon the adoption and
effectiveness of a supplemental indenture (the Supplement). Consistent
with its statements on policies regarding rating confirmations in
structured finance transactions (Jan. 13, 2009) and student loan
confirms (May 8, 2009), Fitch is treating this request as a notification.
The Supplement permits BSFC to use funds held under the Indenture that
are deposited into the principal distribution fund to be used to
purchase outstanding auction rate securities issued under the Indenture
at a price less than par. Bondholder participation in any such purchases
is voluntary. Amounts held in the principal distribution fund are
currently used to redeem securities at par plus accrued interest. Any
securities purchased by BSFC at a discount with amounts held in the
principal distribution fund will be required to be immediately tendered
to the Trustee for cancellation.
Based on the information provided, Fitch has determined that the
execution and delivery of the Supplement and the changes to the
Indenture contained in the Supplement will not have an impact on the
existing ratings on the securities issued under the Indenture. This
determination only addresses the effect of the Supplement and its
changes on the current ratings assigned by Fitch to the securities
issued under the Indenture and listed below. It does not address whether
this change is permitted by the terms of the documents nor does it
address whether it is in the best interests of, or prejudicial to, some
or all of the holders of the securities listed.
Based on the trust estates balance sheet as of Sept. 30, 2009, if any
securities are purchased at a discount under the Supplement, the result
on the trust estate would likely be positive. Fitch would expect
increases in the senior and total parity ratios, as well as the
subordination level for the senior securities. Both the composition of
the loan pool held under the Indenture and the weighted average coupon
rate of the securities are not expected to change materially.
The ratings assigned by Fitch are based on the documents and information
provided to Fitch by BSFC and other parties and the receipt of final
closing documents. Fitch relies on all these parties for the accuracy of
such information and documents. Fitch did not audit or verify the truth
or accuracy of such information.
Led by former Lazard, GE Capital managers, RW launches fund, receives
“green light” letter from the Small Business Administration
LOS ANGELES — RW
Capital Partners, LLC today launched an effort to raise $50 million
of private capital with a new fund aimed at providing loans to small
businesses at a time when many are struggling through the
recession-induced credit crunch. RW Capital’s fund could be matched by
up to $100 million in committed funds upon successful completion of its
application to be licensed by the Small Business Administration as a
Small Business Investment Company (SBIC).
RW Capital Partners is a minority-owned private equity firm led by
former Lazard and GE Capital managers with more than 30 years of
combined experience in private equity, commercial lending, and
management of more than $4 billion of investor capital.
“We believe that America’s economic recovery will be fueled by small
businesses,” said RW Capital founding partner Ellery
W. Roberts. “For many small ventures, the only obstacle to recovery
and growth is access to capital. RW Capital is strongly positioned to
provide much-needed expansion capital to growing companies and to offer
a unique opportunity for our investors and partners.”
“The current economic crisis has left too few lenders focused on lower
middle market businesses,” said founding partner Michael
W. Wingard. “RW Capital Partners will fill an overwhelming need for
capital that can drive acquisitions, fuel growth and create jobs. If SBA
licensing is approved, our limited partners’ investments would be
matched by committed capital that will allow us to pursue a wide range
of opportunities and realize significant returns.”
California Oaks State Bank (OTCBB: COSB),
a community business bank with assets of $125.4 million, today reported a
net loss for 2009 of $563,000 or $0.38 per diluted share, compared to a net
loss of $1,088,212 or $0.73 per diluted share in 2008. In addition, the
Bank paid $183,042 or $0.12 per share in dividend and accretion costs as a
result of the TARP funding received by the Bank from the U.S. Treasury in
January, 2009. The loss from operations prior to income taxes for the
year totaled $264,000. The Bank was required to write down its deferred
tax asset by $299,000 at the end of the year. This increased the overall
loss to $563,000.
Total assets ended 2009 at $125.4 million with gross loans and deposits at
$99.6 million and $97.1 million, respectively. Total assets by comparison
from 2008 were $121.4 million with loans and deposits of $107.6 million and
$90.3 million, respectively. The reduction of loans on a year to year
basis totaled $8 million while deposit growth totaled $6.8 million.
The Bank saw its net deposit base increase $6.8 million primarily in core
deposit growth of $10.9 million while certificates of deposits decreased
$4.1 million. FHLB borrowings decreased $5 million in 2009.
The Banks net interest margin, as a percentage of total average assets for
2009, decreased 91 basis points to 3.98% versus 4.89% in 2008. The Banks
net interest income fell by $972,000 in 2009 as a result of a decrease in
the prime lending rate late in 2008, which impacted all of 2009.
There has been a concerted effort to reposition the loan portfolio from
riskier construction lending to more typical commercial lending. The Bank
ended the year with a land and construction portfolio totaling $8.5
million. Of this portfolio $54,481 was in an active construction loan, the
remaining amount is in land loans. The Bank worked off the construction
portfolio albeit one construction loan that was on nonaccrual. That loan
totaled $54,481 at the end of 2009 compared with $476,255 at the end of
2008. This loan was subsequently paid off during the first quarter of 2010
generating a small loan recovery of $41,826.
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