The rating on North Carolina Medical Care Commission's bonds, issued for Wakemed, is based on an irrevocable direct-pay LOC provided by Wachovia Bank N.A. The LOC covers principal of and interest on the bonds and purchased price for tendered bonds. The LOC will expire on May 5, 2000, unless extended or earlier terminated pursuant to its terms. Bond proceeds will be used to finance the acquisition of equipment and fixed assets for WakeMed.