FOR IMMEDIATE RELEASE October 20, 1999 Contact: Diane Thomas 714.834.6203
Board of Supervisors Approves Tender Offer
(Santa Ana) – The Orange County Board of Supervisors this morning voted unanimously to initiate a Tender Offer program for the County’s outstanding 1994A, 1996A and 1997A Pension Obligation Bonds (POBs). The Board is in a special meeting today for strategic financial planning.
The Tender Offer program will allow the County to purchase outstanding bonds from current bondholders if the bondholders accept the purchase price offered by the County. The approximate par value of the outstanding bonds is $329 million. The County expects to have approximately $300 million available to purchase tendered bonds from funds set aside in the County’s debt repayment reserve as well as funds related to litigation settlements.
“Our first target in the Tender Offer program is the POBs because of their higher interest rate,” said Gary Burton, Chief Financial Officer. “By working through the Tender Offers and other options that will be available, we can significantly reduce the County’s debt and lessen our long-term financial obligations.”
“The debt reduction we can accomplish through this program will allow the Board more future financial flexibility to meet other priorities they established in our long-range strategic financial plan,” said County CEO Jan Mittermeier.