ATLANTA — The University of Georgia is readying its first deal since 2004 this week, roughly $60 million of education facilities revenue bonds that come following an upgrade for the credit from Moody’s Investors Service to Aa2 from Aa3. The deal — to be sold by the Unified Government of Athens-Clarke County Development Authority — is scheduled to price on Wednesday with Wachovia Securities as the underwriter. It is structured with a final maturity in 2038 and will not be insured. Senior vice president of finance and administration Tim Burgess said the proceeds of this deal will be used to expand campus facilities. He pointed out that the deal is being structured so that the debt service matches the revenue stream the university receives from students. Eric Orbock, president of the UGA Real Estate Foundation Inc., pointed out that the bond financing is a somewhat unusual structure.“The transaction will combine both current interest bonds and convertible capital appreciation bonds,” he said. “These latter bonds will accrete interest for a period of time and then will convert to current interest bonds.” Orbock said officials were pleased with the upgrade.“The upgrade reflects the university’s strong academic standing as well as the strength of its leadership and management,” he said.Dennis Gephart, an analyst from Moody’s, said the UGA Real Estate Foundation and the University of Georgia Athletic Association have entered into a number of hedging agreements with highly rated counterparties related to variable rate debt. During fiscal year 2007, the foundation entered into a forward starting swap related to the planned issuance of these Series 2007 bonds. That agreement will be unwound concurrent with this financing. Given the unrestricted financial resources of the university and its affiliated foundations relative to the hedges, Moody’s Aa2 rating incorporates the risks associated with the derivative exposure, Gephart said. University officials point out that a student center project to be funded with these bonds came from a student driven initiative. The students in fact voted to impose a fee on themselves to fund it, Orbock said.The university, located in Athens-Clarke County, graduated its first class in 1804. The main campus consists of approximately 605 acres plus 312 acres of the state botanical garden.
-
In a move that kicks the can down the road at the very least, the Commission has begun a process that often results in outright rejection.
26m ago -
The 2022 law, which has so far banned three major investment banks from underwriting municipal bonds in Oklahoma, could be amended to limit its reach to state agencies.
1h ago -
The SEC has won a partial victory against Choice Advisors and its principal Matthias O'Meara for their role in acting as unregistered brokers and for engaging in a fee-splitting arrangement.
3h ago -
The trio have decades of experience in high yield and investment grade portfolios and will launch new high-yield investment strategies and vehicles for Rockefeller.
4h ago -
"The rating action reflects our view of MIA's substantial demand, which surpasses pre-pandemic activity, and its leadership in enplanement growth for large hub airports since the fiscal 2019 peak," said S&P's Nora Wittstruck.
4h ago -
A state ban on bond underwriters that "boycott" or "discriminate" against the fossil fuel or firearms industries has resulted in fewer banks providing municipal financial products and services.
6h ago