The New Jersey Educational Facilities Authority yesterday approved up to $800 million of refinancing debt, including $575 million for the University of Medicine and Dentistry of New Jersey.

The UMDNJ transaction will take the school's monthly state-aid payments and designate them for paying down debt service costs. The university receives about $200 million of state aid annually, with more than $180 million of that to be used for debt service payments. That structure will enable it to have debt service coverage of three times, according to authority executive director Roger Anderson.

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