$112,260,000
COUNTY OF SAN DIEGO AND SAN DIEGO COUNTY SCHOOL DISTRICTS
TAX AND REVENUE ANTICIPATION NOTE PROGRAM

NOTE PARTICIPATIONS, Series 2009 B-1 and Series 2009 B-2

Greencoast served as Financial Advisor for the San Diego County School Districts $112.26 million Tax and Revenue Anticipation Note (“TRANs”) Program. The transaction was priced in an extremely difficult credit market due to the severe budgetary shortfalls facing the State of California. During the credit rating process, the Governor simultaneously issued two May Revisions to the January State Budget and a third revision in June. In addition, the California Legislative Analyst’s Office (“LAO”) released a report detailing the likelihood of additional cuts in State Aid to K-14 School Districts as well as additional deferrals in State monies. With each revision regarding anticipated reductions in State Aid for School Districts, Greencoast worked with the San Diego Office of Education and the 17 individual School Districts to revise their cash flow models to reflect the latest estimate of cash flow for the 2010 fiscal year. Notwithstanding the financial difficulties facing California school districts, Greencoast was able to secure Standard and Poor’s short-term ratings of SP-1+ for 11 of the School Districts and SP-1 for the remaining six School Districts. The issuance was bifurcated and then pooled into 2 sub-series, based on the credit ratings of the School Districts.