Higher education bonds

DALLAS — With higher education at the center of Arizona’s debate over how to revive its struggling economy, two of its major state universities will issue $237 million of revenue bonds to upgrade their flagship campuses.

CHICAGO — With Illinois more than $700 million in arrears on aid it owes its public universities, the Senate approved a measure yesterday that would allow the universities to issue short-term debt to manage through the ongoing payment delays.

The University of North Carolina system expects to issue $151.4 million of pool revenue bonds for six state universities next week as the state’s difficult budget decisions may affect tuition rates.

Standard & Poor’s last week revised its outlook to stable from negative on the University of Chicago Medical Center’s AA-minus rating due to its strong operating performance over the last year.

DALLAS — In a lean budget environment, the University of Texas Board of Regents will hit the market with $700 million of triple-A rated revenue bonds this month, starting today with a $330 million issue.

WASHINGTON — ­The Maryland Health and Higher Educational Facilities Authority is expected Wednesday to price the state’s first charter school municipal bonds, an achievement 18 months in the making and another sign that investor appetite for credit risk has returned.

The Dormitory Authority of the State of New York yesterday gave final approval to up to $778 million of bonds to refund certain state-backed debt.

CHICAGO — Lincoln, Neb., would partner with the University of Nebraska to build a $344 million arena on a stretch of blighted rail yard west of downtown under a plan that will go before the city’s voters in May.

Fees levied by special business districts on Arizona state university land could be used to support bonds for athletic facilities under a bill introduced by Rep. Warde Nichols, R-Gilbert.

CHICAGO — The Illinois Finance Authority this week advanced plans for $750 million of health care borrowing planned by Alexian Brothers Health System, the University of Chicago Medical Center, Palos Community Hospital, and a continuing-care community.

CHICAGO — The fiscal strain in Illinois that has led to record long bill payment delays this week prompted Moody’s Investors Service to downgrade five of eight state-supported universities that are owed $735 million by the state.

DALLAS — The Kansas Development Finance Authority will go to market today with the first sale from a $105 million state authorization that will partially finance a federally operated biohazard research facility, as Moody’s Investors Service lowered its outlook on the state to negative from stable.

CHICAGO — Purdue University in Indiana will enter the market today with $73.6 million of student fee bonds to refinance some of its variable-rate debt into a fixed-rate mode.

SAN FRANCISCO — Former public finance banker Nathan Brostrom has been promoted to executive vice president of business operations of the University of California system.

The state would privatize the Ohio Lottery and the Ohio Turnpike and use the money to fund a college scholarship program under a bill introduced last week by Sen. Kevin Coughlin.

CHICAGO — The University of Minnesota, one of the first borrowers to use the Build America Bond program last spring, enters the market today with $36 million of fixed-rate, new-money bonds that will again tap the federal stimulus program.

The state Legislative Analyst’s Office on Tuesday lambasted one of Gov. Arnold Schwarzenegger’s highest-profile proposals for the year: a constitutional amendment that would require California, starting in 2014, to dedicate no more than 7% of its general fund spending to prisons and at least 10% to public universities.

The Dormitory Authority of the State of New York approved up to $285 million of tax-exempt bonds on behalf of Cornell University at its monthly board meeting yesterday.

Yale University got the green light yesterday to bring $800 million of tax-exempt bonds to market next month, though the offering is expected to be considerably smaller.

Standard & Poor’s last week revised the outlook on seven Illinois state universities to negative from stable due to their exposure to the state’s liquidity problems that have resulted in delays in state aid payments.