The Dormitory Authority of the State of New York Wednesday approved more than $2 billion of long-term debt, including $1.5 billion of personal income-tax revenue bonds, to help finance infrastructure projects at higher educational institutions and other capital needs.
DASNY plans to issue the $1.5 billion of 30-year PIT bonds through different series of tax-exempt and taxable fixed-rate debt. Officials are still working on when the PIT bonds will price and the debt could sell through negotiation or competitive bid, according to DASNY.
The $1.5 billion authorization includes $397 million of PIT bonding that the authority’s board approved in January, DASNY spokeswoman Susan Barnett said.
The bulk of the PIT bond proceeds will support capital needs at public colleges and universities throughout New York and also various state environmental programs. The State University of New York, which has 64 campuses, will receive $835 million and the City University of New York system will gain $390 million for infrastructure needs.
Another $145 million will help support the Expanding our Children’s Education and Learning capital program.
Hawkins Delafield & Wood LLP and Bryant, Burgher, Jaffe and Roberts LLP are bond counsel for the PIT bonds. Underwriters have not been selected.
The board approved $500 million of building aid revenue bonds, part of the state’s school district financing program, to roll over bond anticipation notes and help finance capital projects at the state’s public schools. DASNY will issue the bonds on behalf of local school districts.
Jefferies & Co. and RBC Capital Markets are co-lead managers of the building revenue bond deal. Hiscock & Barclay LLC is bond counsel. The transaction will include tax-exempt and taxable debt with maturities not to exceed 30 years.
Loop Capital Markets LLC will serve as lead manager on a $30 million tax-exempt refunding deal for the Nassau County Board of Cooperative Educational Services, which offers shared-services for 56 school districts. DASNY anticipates the fixed-rate transaction will generate $2.9 million of net-present-value savings, Barnett said.
Orrick, Herrington Sutliffe LLP and Thompson and Thompson PC are bond counsel.
