FOR IMMEDIATE RELEASE
October 20, 1999
Contact: Diane Thomas
Board of Supervisors
Approves Tender Offer
The Orange County Board of Supervisors this morning voted
unanimously to initiate a Tender Offer program for the
Countys 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 Countys 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 Countys
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.