Finance Authority of Maine offers to buy back some auction-rate bonds

By Angela McDaniels

Tacoma, Wash., Dec. 1 - The Finance Authority of Maine has begun a tender offer for $286.75 million of its auction-rate education loan revenue bonds, according to a notice from the authority.

The offer covers the following bonds of the authority:

• $58.25 million series 2003A senior bonds due Dec. 1, 2033;

• $44.5 million series 2005A-1 senior bonds due Dec. 1, 2035;

• $44 million series 2005A-2 senior bonds due Dec. 1, 2035;

• $50 million series 2007A-1 senior bonds due Dec. 1, 2037;

• $50 million series 2007A-2 senior bonds due Dec. 1, 2037; and

• $40 million series 2007A-3 senior bonds due Dec. 1, 2037.

The authority said the amount it will spend on the repurchases will be no more than $20 million for the series 2003 bonds, $20 million for the series 2005 bonds and $50 million for the series 2007 bonds.

Holders who wish to tender should specify their desired price, which cannot exceed $900 per $1,000 principal amount.

The authority will purchase all bonds offered at prices that do not exceed the cap in order of lowest price to highest price.

Holders will also receive accrued interest.

The offer will expire at 5 p.m. ET on Dec. 23, and the settlement date will be Dec. 31.

The authority held a tender offer for the same bonds in August but rejected all the offers received.

The paying agent and tender agent is Bank of New York Mellon Trust Co., NA.

Institutional bondholders can direct questions to offer coordinator Christopher Roney (Croney@famemaine.com).

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