CHICAGO - Downtown Chicago-based Roosevelt University is planning to sell up to $210 million of new-money and refunding bonds later this year to raise funds for a new multi-use building that will include new student housing as part of its evolution from a commuter school to a residential urban campus.

Roosevelt in the fourth quarter plans to issue through the Illinois Finance Authority fixed-rate bonds to refund about $33 million of variable-rate debt from previous issues in 1995, 2000, and 2002. The university tentatively expects to pay about $2 million to cover the costs of terminating swaps and letters of credit tied to the debt.

"In addition to reducing variable-rate risk, the Series 2009 bonds will eliminate LOC renewal risk and LOC pricing renewal risk, and streamline financial covenants across its bond issues," according to IFA documents.

About $167 million of new-money proceeds would finance construction of the new 32-story multi-use building located just around the corner from its main campus. The building will house some administrative offices, new lecture halls, dining facilities, a fitness center, and science laboratories. It will also serve as home to the school's College of Business Administration.

The project includes plans for 500 student beds, though a net increase of only 236 is expected because some existing beds are being lost due to the demolition of a student housing facility now on the site.

Barclays Capital is the senior manager and Morgan Stanley is co-senior. Columbia Capital Management is financial adviser and Katten Muchin Rosenman LLP is bond counsel. The university currently has a Baa1 from Moody's Investors Service and an A-minus from Fitch Ratings.

The school was established in 1945 and has since opened a northwest suburban campus with an overall total of about 7,700 students.

"Roosevelt's niche has been providing education to residents of the inner city, students who work full-time, and students who are the first in their families to attend college," IFA documents said. "The university is in the process of transforming itself from an institution catering to predominately part-time, nontraditional students to a four-year, traditional urban campus providing a world-class academic environment and modern living and learning facilities."

The deal, along with a handful of others from Illinois-based health care and higher education institutions, was presented to the IFA board earlier this month.

Deerfield-based Trinity International University, north of Chicago, plans later this year to issue up to $23.5 million of variable-rate debt to refund $22 million of outstanding debt and finance a new student life center on its campus.

Trinity has not announced the bank that will provide a direct-pay of letter of credit for its transaction but it intends to include a guarantee from the Federal Home Bank of Chicago. Under a program included in the Housing and Economic Recovery Act of 2008, federal home loan banks were allowed to provide LOCs for non-housing debt issuance through 2010.

Previously, their backing was limited to tax-exempt housing projects. The FHLBs' support is in effect a wrap on enhancement provided by a local bank that must post collateral. After a slow start, the program has been picking up steam as local banks, borrowers, and underwriters see its value.

The school was established in 1996 following the merger of Trinity College and Trinity Evangelical Divinity School. It serves about 3,000 students. BMO Capital Markets GKST Inc. is senior manager and Ice Miller LLP is bond counsel.

Lake Forest Hospital this fall will privately place up to $60 million of variable-rate bonds to raise funds to construct various projects including an outpatient surgery center, radiation oncology center, and observation beds at its Grayslake Campus. The hospital is rated A by Fitch, A3 by Moody's, and A-minus by Standard & Poor's. Kaufman Hall & Associates Inc. is financial adviser. The bonds will be placed with either JPMorgan or Northern Trust Co.

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