College Bonds Get the Nod

The Council of Bond Oversight last week authorized the Oklahoma Development Finance Authority to issue $100 million of debt for the higher education master real property program for projects at state colleges and universities.

Almost half of the proceeds will be used to purchase facilities that have been financed through lease-purchase agreements. The acquisition program was authorized by the Legislature in 2008.

The bonds will be issued on behalf of the State Regents for Higher Education.

The regents will refinance four student housing projects and acquire the properties. State bond adviser Tim Martin said the $46 million refinancing effort will save $7 million over the term of the debt.

Proceeds also will provide $47 million for maintenance and upgrades at various campuses.

The University of Central Oklahoma will buy a 384-bed student housing complex originally financed though Edmond Economic Development Authority. The $12.4 million purchase is expected to save $3.3 million of lease payments.

The OSU Institute of Technology will buy student housing in Okmulgee financed through Rural Enterprises of Oklahoma Inc. for $12 million.

Student housing complexes will also be refinanced and purchased by the University of Arts and Sciences of Oklahoma and Connors State College.

The University of Central Oklahoma will buy an existing facility in Oklahoma City’s Bricktown area to house the school’s Academy of Contemporary Music.

The school had been leasing the top two floors of the building for the past two years.

Oklahoma’s appropriations-backed debt is rated AA by Fitch Ratings and Standard & Poor’s, and Aa3 by Moody’s Investors Service.

For reprint and licensing requests for this article, click here.
Higher education bonds
MORE FROM BOND BUYER