The Certificates represent fractional undivided interests in a pool of debentures which will be issued, simultaneously with the Certificates, by small business investment companies licensed by the U.S. Small Business Administration, an independent agency of the United States.
The Certificates are issued by SBA, through its agent The Bank of New York, as Trustee. SBICs: Small Business Investment Companies, licensed by the U.S. Small Business Administration.
The Pool: The Pool will be composed of $289,550,000 aggregate principal amount of 5.471% debentures to be issued on or about March 26, 2008, by thirty-six SBICs.
Payment Dates: Payment of interest on the debentures in the pool will be made on each March 1 and September 1, commencing September 1, 2008.
Distribution Dates: Distributions of interest will be made on the Certificates, on each March 10 and September 10, commencing September 10, 2008. Each debenture is scheduled to mature on March 1, 2018, and final distribution in retirement of the Certificates is scheduled for March 10, 2018. Capitalized terms used on this page and in this Offering Circular have the meanings given to them in the text of this Offering Circular.
SBA is guaranteeing the timely payment of principal and interest when due on the debentures and the timely pass-through of such principal and interest to Holders of the Certificates.
acceptable for purchase by and as security for advances to member banks of the Federal Reserve System; and
eligible as security for the deposit of public monies of the United States and as collateral for Treasury Tax and Loan Accounts.
Each debenture in the Pool is subject to Optional Prepayment, in whole but not in part, at the option of an SBIC on any Payment Date on or after September 1, 2008, at a prepayment price of 100% of the principal amount of the debenture, together with accrued interest. See ‘‘Optional Prepayment of Debentures.’’
An Acceleration Event with respect to a debenture in the Pool will occur upon an event of default and transfer of the SBIC into liquidation status by SBA. Upon an Acceleration Event, pursuant to its Guarantee, SBA will make a payment of 100% of the principal amount of a debenture in the Pool, together with interest accrued to the Payment Date next following an Acceleration Event. See ‘‘Acceleration of Debentures.’’