The Dormitory Authority of the State of New York gave final approval for $375 million of tax-exempt bonds for Cornell University and preliminary approval for up to $30 million of tax-exempt bonds for a children’s hospital.
Cornell, located in Ithaca, plans to use the proceeds for capital projects totaling $182.7 million. It also plans to refund about $146 million of tax-exempt commercial paper and $32.7 million of taxable commercial paper, and will use $8.7 million to terminate a forward swap executed in 2007.
The bonds will have maturities up to 30 years and may be issued in multiple series. JPMorgan and Merrill Lynch & Co. will lead manage the sale. Orrick, Herrington & Sutcliffe LLP is bond counsel.
DASNY also gave preliminary approval to the issuance of up to $30 million of bonds on behalf of Blythedale Children’s Hospital. The Valhalla hospital plans to use the bond proceeds for renovation and expansion, including the construction of a two-story building.
The hospital expects to sell the debt as variable-rate demand bonds in weekly mode with a 27 year maturity. The bonds will be secured by a direct pay letter of credit from TD Bank.