Higher education bonds

CHICAGO — Ohio’s Kenyon College will enter the market today with $102.4 million of refunding bonds to refinance all of its variable-rate debt into fixed-rate mode.

Arizona made a late tuition payment to the three state universities last week, but continued to postpone a scheduled payment from the state general fund.

A proposal to allow the Dormitory Authority of the State of New York to sell bonds for charter schools died last week along with proposed legislation to increase the state’s cap on the number of charter schools.

A group of Allegheny County, Pa., residents angered over the planned closing of Braddock Hospital are trying to stop a $1.17 billion University of Pittsburgh Medical Center refunding deal and anticipate filing suit against a state conduit agency if it moves ahead with the bond sale.

WASHINGTON — Harvard University has been tapped for one of roughly 40 audits the Internal Revenue Service is conducting this year to examine the financial and business practices of tax-exempt colleges and universities.

Missouri Rep. Chris Kelly, D-Columbia, last week submitted to the General Assembly a bill that calls for a public vote on $800 million of borrowing for higher education projects.

CHICAGO — Cincinnati-based Xavier University will enter the market today with $48 million of general obligation lease rental bonds.

Moody’s Investors Service Tuesday downgraded Spelman College’s debt rating to A1 from Aa3.

The expiration two years ago of the law allowing the 116 industrial development agencies in New York to sell bonds on behalf of nonprofits is changing the landscape for borrowers and issuers.

Fitch Ratings has downgraded Wartburg College’s Series 2005A private facility revenue bonds to BB from BBB-minus with a negative outlook due to a weakened financial profile. The bonds were sold in 2005 through the Iowa Higher Education Loan Authority.

CHICAGO — Ohio State University today will begin taking retail orders on a refunding issue that will range in size from $154 million to $274 million in order to eliminate some of the school’s variable-rate debt and achieve savings on its existing fixed-rate bonds.

The Arizona Board of Regents sent a letter last week to Gov. Jan Brewer warning that university classes may be cut and employees laid off if the state continues to delay scheduled monthly payments.

CHICAGO — Triple-A rated University of Michigan will enter the market today with $163 million of general revenue Build America Bonds.

Texas Children's Hospital in Houston will open the new year by retiring $78 million of auction-rate securities almost two years after the market for that type of debt collapsed.

Municipal market participants want Congress to provide more assistance for muni bonds next year by extending or expanding many of the bond-related provisions in the American Recovery and Reinvestment Act, especially those authorizing the Build America Bond program.

Pennsylvania Gov. Edward Rendell Thursday warned that he would lay off 1,000 state employees to help balance the current budget unless the legislature passes a table games bill by Jan. 8.

Ohio Gov. Ted Strickland this week warned he would call a special session over the holidays if legislators are not able to fill an $850 million hole in the state's two-year budget by the end of the week.

The University of Arkansas will begin a multi-year effort to renovate facilities at its main campus in Fayetteville with most of the proceeds from this week's negotiated sale of $51.9 million of facility revenue bonds by the University of Arkansas Board of Trustees.

Federal Recovery Zone Economic Development bonds will save Metropolitan State College up to $20 million in interest cost on construction of a new academic building on the Denver campus, school officials said last week.

DALLAS — The Texas A&M University System has called off a plan to issue $106.7 million of revenue financing system refunding bonds, citing market conditions that precluded sufficient savings.