Moody’s Investors Service last week raised Missouri State University’s auxiliary system revenue bonds one notch to A1 due to the completion of a multipurpose arena that has generated additional revenue to support debt service.
The review came ahead of MSU’s sale of $57 million of bonds, including $47 million of new-money and refunding auxiliary system revenue bonds and $10 million of new-money educational facilities revenue bonds that carry a Aa3 rating. The deal includes $30 million of taxable Build America Bonds.
The university has $112.5 million of rated debt. The bonds are being sold through the Missouri State Health and Educational Facilities Authority.
Proceeds of the auxiliary bonds will finance the construction of a new recreation center, improvements to residential facilities, and 2005A bond refundings. The educational facilities bonds will finance various capital improvements.