The Dormitory Authority of the State of New York last week approved new bond financings, refundings, and conversions totaling $1.68 billion, including up to $1.1 billion of personal income tax bonds.
Proceeds from the PIT bonds will be used to finance capital projects for the State University of New York system, the SUNY upstate community college program, the City University of New York system, and other education-related projects.
All but $23 million of the bonds will be tax-exempt with the taxable portion being used for a joint venture between SUNY and a private company.
DASNY expects to market the bonds in early November, though it has not set a date. The bonds could be sold in multiple series and will have maturities up to 30 years. No underwriter has been selected. Sidley Austin LLP is bond counsel.
DASNY gave final approval to $274.5 million of new tax-exempt financings for five colleges and a library district. The largest was for Brooklyn-based Pratt Institute, which plans to use the proceeds of up to $110 million of bonds to refund outstanding debt and build a portion of a facility.
The Rochester Institute of Technology plans to build a mixed-use residential housing complex and make improvements to its heating and cooling plants using the proceeds of up to $85 million of bonds. Other institutions that were approved for bond transactions were Wagner College, LeMoyne College, and St. John Fisher College.
The Smithtown Special Library District plans to use the proceeds of up to $21 million of 20-year fixed rate bonds to build a new branch library and renovate three existing branches.
DASNY also approved the conversion of $117.5 million of bonds issued on behalf of the New York Public Library. The conversion will terminate an MBIA Insurance Corp. policy on the variable-rate demand bonds and replace the insurance and liquidity facilities with direct-pay letters of credit.
Five health and educational institutions received initial approval for bond transactions totaling $157.4 million: Catholic Health System Inc. Obligated Group, D’Youville College, NYSARC Inc., Niagara University, and Brooklyn Law School.
