DALLAS – With market conditions improving, the University of Houston System plans to increase the size of its competitive sale on Thursday by $40 million, according to officials involved in the deal.
The offer will now include $392.9 million of tax-exempt Series A and $11.6 million of taxable Series B.
"As rates have come down since the posting of the preliminary official statement, more bonds have become economic for inclusion in the refunding," said financial advisor Drew Masterson, managing director for Hilltop Securities.
The bonds are rated Aa2 by Moody's Investors Service and AA by S&P Global Ratings.
UH, which generally prices debt competitively, is providing the new bonds about a year after a $283 million sale that also included taxable and tax-exempt debt.
The university is planning to issue up to $560 million of additional debt for student housing and other needs over the next three fiscal years. About half of that debt is expected to include tuition revenue bonds backed by the state and approved by the 2015 Texas Legislature.
The UH System is the fourth from Texas in the muni market this month. The Texas A&M, Texas State and North Texas university systems are combining for more than $1.5 billion, much of it made up of TRBs.
The UH System is the third-largest in the state, with over 70,000 students. It includes four universities and off-campus teaching centers in the Houston metropolitan area
