The Monroe County, N.Y., Industrial Development Corp. is scheduled to issue $161 million of fixed-rate, tax-exempt revenue bonds on Thursday following a one-day retail order period, to benefit 19 projects at the University of Rochester.
The largest undertaking is the vertical expansion of the James P. Wilmot Cancer Center, according to Ronald Paprocki, the school’s chief financial officer and senior vice president for administration and finance.
Other projects include construction of a residence hall, renovation of dining facilities, and infrastructure improvements.
The funding will consist of $123 million of Series 2011A bonds and $38 million of Series 2011B bonds. The Series A issuance includes $15 million for refinancing, which Paprocki said will save the university about $1 million.
Standard & Poor’s has assigned an A-plus with a positive outlook. Moody’s Investors Service rated the bonds Aa3 and Fitch Ratings gave them a AA-minus, each with a stable outlook.
Standard & Poor’s revised the outlook to positive in March, reflecting its assessment of a rebound in the school’s fiscal 2010 operating performance and its lowered endowment spending to “a more sustainable rate.”
In addition, “the university has experienced increasing enrollment and demand that we believe will likely result in continued healthy operating surpluses,” said analyst Charlene Butterfield.
The school had about $765 million of long-term debt as of March.
“Strong performance from UR’s health care enterprise and growth in revenue from academic operations are expected to marginalize anticipated decline in patient care reimbursement levels, government-derived funding and sponsored research programs,” Fitch said in its report.
Harris Beach PLLC is bond counsel. JPMorgan and Barclays Capital are co-lead managers. Nixon Peabody LLP is university counsel, while Winston & Strawn LLP is representing the underwriters. No swaps or insurance are involved.
The Wilmot Cancer Center expansion would bring inpatient and outpatient care into a single building. Director Richard Fisher, in a statement on the center’s website, called the expansion “a significant advance for our patients as well as our clinical and scientific research programs.”
Construction is expected to begin in September on a five-story, 148-bed building adjacent to the Wilder and Anderson towers that officials hope to finish in time for the 2012-13 academic year.
The first new residence hall on campus in 42 years, part of a housing buildup along the Genesee River, will include singles, doubles, and adjoining doubles housing.
Infrastructure improvements include modernizing the aquatics center and fieldhouse, and replacing lighting at Fauver Stadium, the school’s football field.
The school has an undergraduate enrollment of 5,319 and a total of 8,520, according to the preliminary official statement that accompanied the bond sale.