Higher education bonds

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.

Moody’s Investors Service last week upgraded the Community College District 509 in Elgin to Aaa from Aa1 in conjunction with its upcoming sale this week of $45 million of general obligation bonds that were approved by voters last month. The deal includes taxable Build America Bonds.

The Arizona Sports and Tourism Authority last week said it would make fiscal 2010’s $16 million debt-service payment on the $275 million of revenue bonds it issued to finance the $455 million University of Phoenix Stadium in Glendale.

The Dormitory Authority of the State of New York adopted new borrowing guidelines for lower-rated credits at its monthly board meeting yesterday. DASNY’s board also gave final approval to $1.43 billion of bonds, mostly on behalf of the state.

DALLAS — Two university systems based in Denton, Tex., will use more than $180 million of bond proceeds for new facilities, including a satellite campus in Dallas 35 miles to the south.

Municipalities are preparing a decent slate consisting heavily of taxable bonds for sale this week following a holiday-shortened week with little activity.

DALLAS — Faced with an unprecedented decline in tax revenue, Kansas Gov. Mark Parkinson on Monday slashed almost $260 million from the state’s fiscal 2010 budget.

The Metropolitan Sports Facilities Commission last week signed off on a resolution designed to keep the National Football League’s Minnesota Vikings in the Hubert H. Humphrey Metrodome for an extra two years.

WASHINGTON — Brazos Student Finance Corp. wants to be the first student loan lender to ask institutional investors to voluntarily tender, at a discount, illiquid auction-rate securities in exchange for new floating-rate notes, about a year after a much larger and more complex offer failed.

WASHINGTON — The University of North Carolina at Chapel Hill next week expects to issue $224 million of tax-exempt debt and Build America Bonds, which will be used to finance or refinance the costs of certain capital projects.

DALLAS — Amid an ambitious expansion plan, the University of North Texas Board of Regents is preparing to issue $180 million of system revenue bonds for its Dallas campus and for a new football stadium at the main campus in Denton.