The Dormitory Authority of the State of New York at its board meeting yesterday gave final approval for $1 billion of bonds to finance workers’ compensation settlements with New York State and $520 million of debt for two colleges.
DASNY plans to issue up to $1 billion of pledged assessment revenue bonds — bonds backed by assessments on workers’ compensation insurers and self-insured employers — next month.
The state will use the bond proceeds to settle claims to the special disability fund that the state established in 1916 to reimburse insurers for workers’ compensation claims for certain disabilities.
The fund will be closed to new claims next year and the state will sell up to a total of $4.55 billion of bonds to settle existing claims, fund liabilities, and fund the cost of transferring liabilities to insurers.
Goldman, Sachs & Co. and Siebert Brandford Shank & Co. are lead underwriters on the bonds that will have maturities of up to 30 years. Hawkins Delafield & Wood LLP is bond counsel.
The bonds are expected to price next month as fixed-rate, tax-exempt bonds, according to a bond sale calendar posted by the state comptroller’s office.
Moody’s Investors Service rates the bonds Aa3 with a stable outlook. Fitch Ratings and Standard & Poor’s assign AA ratings with stable outlooks to the bonds.
New York University received board approval to market $490 million of bonds to finance various capital projects, real estate acquisitions, and refinancing.
NYU, a private nonprofit university based in downtown Manhattan, has approximately 30,000 undergraduate students and 20,000 graduate students.
The university plans to use $239 million to renovate or construct facilities at eight or more locations, $177 million to acquire a recently built dormitory and condominium for research and administrative offices, and $65 million to refinance outstanding taxable debt.
Morgan Stanley will lead manage the marketing of the bonds, which will have maturities up to 40 years. Nixon Peabody LLP is bond counsel.
NYU treasurer Rosemarie Loffredo declined to comment on the deal, which, according to the comptroller’s calendar, is expected to price next week.
The university has approximately $1.45 billion of rated debt outstanding, according to a Moody’s report.
NYU is in the process of developing long-term expansion plans to meet expected growth.
The university expects it will need an additional six million square feet of space by 2031, according to a preliminary study posted on its Web site.
Moody’s rates the school’s outstanding debt Aa3 with a stable outlook and Standard & Poor’s rates it AA-minus with a stable outlook.
Siena College, a four-year private nonprofit institution in Loudonville, plans to use the proceeds of up to $30 million of bonds to finance the construction of a new residence hall and dining facility. The school, located north of Albany, has about 3,000 students, of which about 2,450 live on campus.
“We’re trying to address student demand for housing,” said Paul Stec, vice president for finance and administration. “Students are preferring a residential education.”
RBC Capital Markets will underwrite the bonds, which will have maturities of up to 30 years and are expected to price in mid-November. Hiscock & Barclay LP is bond counsel.
DASNY also gave preliminary approvals to four bond financings totaling $97.4 million on behalf of Marymount Manhattan College, Nottingham Retirement Community Inc., the Northern Westchester Hospital Association, and Union Theological Seminary.