Higher education bonds

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.

CHICAGO — Gov. Pat Quinn yesterday signed legislation that allows Illinois’ nine public universities to issue short-term debt in anticipation of state aid to help the schools manage through the state’s chronic payment delays.

Moody’s Investors Service has revised its outlook to stable from negative on the University of Iowa Hospitals & Clinics Aa2 rating due to the system’s improved operating performance.

The University of Puerto Rico is seeking more revenue from its student body to help close an estimated $166 million deficit for the upcoming school year and support capital projects.

As families struggle in the aftermath of the global financial crisis and recession, affordability has become a key concern when analyzing private higher education credits, according to a report from National Public Finance Guarantee Corp.

WASHINGTON — The North Carolina Senate yesterday passed a $451 million bond package for its state university and community college systems as some legislators emphasized the importance of education investment even in the face of a large budget deficit.

An ongoing student strike at the University of Puerto Rico has placed the school semester on hold, but the standoff does not affect its ability to repay its $569 million of outstanding bonds, according to a university official.

The Dormitory Authority of the State of New York’s upcoming $1.3 billion personal-income tax bond deal will be the state’s largest ever municipal issue with a minority firm serving as book-runner, DASNY announced yesterday.

Kent State University’s board last week approved a five-year, $250 million capital plan to finance various improvements starting next year through 2016. Officials also said they would ask the state for $65 million in financing.

Moody’s Investors Service last week downgraded Northwest Missouri State University’s rating to A3 from A2 due to fiscal pressures on the school. The action affects $85.7 million of debt.

The Dormitory Authority of the State of New York today plans to competitively price $800 million of taxable personal income tax Build America Bonds.

The Dormitory Authority of the State of New York approved $2.31 billion of personal income tax bonds at a special board meeting in Albany yesterday.

WASHINGTON — The Internal Revenue Service has closed its audit of $161.3 million of variable-rate demand student housing revenue bonds issued by the Payne County, Okla., Economic Development Authority in 2002 with no change to the tax-exempt status of the debt.

A position the Internal Revenue Service is taking regarding $150 million of student-loan revenue bonds under audit could have ramifications for the entire tax-exempt student loan bond industry, market participants said last week.

The Dormitory Authority of the State of New York last week revised a previously approved financing because staff expected that credit rating recalibrations obviated the need for mortgage insurance.

Bonds backed by federally guaranteed student loans are subject to greater short-term basis risk because of a mismatch in the way the interest rate on the bonds is calculated compared to the way the Department of Education sets interest on the underlying loans that flow into bond trusts, according to a report released by Fitch Ratings yesterday.

WASHINGTON — Goldman, Sachs & Co. has hired Christopher J. Cowen as managing director and co-head of higher education in its public sector and infrastructure banking business.

BRADENTON, Fla. — The federal judge presiding over the Alabama ­Public School and College Authority’s case that attempts to void a swaption with ­JPMorgan has agreed with a joint request to delay the trial more than four months.

CHICAGO — The University of ­Chicago is watching the market closely, hoping to sell $300 million of taxable fixed-rate bonds this week or next to raise funds for capital projects and restructure debt from a bank line of credit.

The University of Connecticut plans to market tax-exempt bonds to institutional investors tomorrow in a $138.8 million offering that began a two-day retail order period on Friday.