Citizens’ Finance and Investment Committee Meeting Recap

The Finance and Investment Committee of Citizens Property Insurance Corporation (“Citizens”) met May 23, 2007.  The proceedings of that meeting are as follows:

At 8:00 am, Bruce Douglas, chairperson of the committee, called the meeting to order, and the minutes from the previous committee meeting were adopted.  Next, John Forney discussed PLA/CLA liquidity financing, which includes bond financing and line of credit financing. He stated that the bond insurance would be available at 33.4 basis points, which would contribute to over $4 million in savings compared to last year.  Mr. Forney also noted that the line of credit would be available at a rate below 1%. Mr. Forney then stated that the four goals set out at the last meeting – to achieve liquidity, improve the credit score, improve financing, and do these cost-efficiently – have all been achieved and would be completed by the July 2nd deadline.

Bond counsel, went over the bond and line of credit resolutions.  He stated that the bonds, the principal of which would not exceed $9.5 million, would be obtained at auction rate.  These bonds would be issued in series of ten and would mature no late than July 1, 2022.  He also stated that the line of credit resolution authorizes $1 billion.

Disclosure counsel, said that the documents given to the committee and board members included an approved draft of the preliminary statement and included a memorandum that summarizes the official statement.

Lastly, Sharon Binnun discussed the consent agenda.  She stated that Mellon Bank was the suggested custodian for SBA bond proceeds and they would provide .5 basis points for assets under custody.  She also stated that Regions Bank was suggested to act as HRA bond proceeds Indenture Trustee.

Mr. Douglas then commented that the Claims Committee met with the Legislative Task Force, and that the Task Force approved Citizens’ operations improvements.  The meeting was then adjourned.

 

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