The University of Arkansas for Medical Sciences serves patients in Little Rock.

DALLAS - The University of Arkansas Board of Regents plans to capture savings on a $90 million refunding of bonds issued in 2006 for the medical school in Little Rock.

Pricing through negotiation with Stephens Inc. is planned for Dec. 3.

Moody's rates the bonds Aa2 with a stable outlook.

"The stable outlook incorporates expectations of continued solid student demand, healthy operating performance and maintenance of flexible reserves," Moody's lead analyst Dennis M. Gephardt wrote in his Nov. 12 report.

The multi-campus University of Arkansas system has $1.2 billion of rated debt outstanding, according to Moody's.

Pledged revenues for the upcoming bonds come from hospital revenues on the UAMS campus. In fiscal year 2014 pledged revenues were $587 million, which represented a 1.9% increase from the prior year. That compares to about $18.8 million of maximum annual debt service. The outstanding debt is expected to be retired by 2036.

"Future borrowing plans are expected to remain manageable, although limited state capital support will prompt borrowing for ongoing capital needs," Gephardt said. "Over the next several years the Fayetteville campus is contemplating additional parking and student housing investments as well as potential borrowing to fund football stadium improvements over time."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.