Higher education bonds

CHICAGO — Chicago-based Roosevelt University enters the market next week to sell $188 million of debt to finance a new multi-use building that officials believe was worth a rating downgrade for the school to keep its transformation from a commuter school to a residential urban campus on track.

New York State plans to market $100 million of tax-exempt fixed-rate student loan bonds this week under a new program. The New York Higher Education Finance Authority will offer the debt to retail investors tomorrow, with institutional sales beginning on Thursday.

WASHINGTON — The Virginia College Building Authority tomorrow expects to competitively sell $237 million of revenue bonds for nine public higher education institutions, which may lose up to 15% of their state aid this fiscal year.

Yale University priced $1 billion of five-year taxable fixed-rate notes yesterday. The notes, which will mature in five years, will be used to take out $560 million of taxable commercial paper and provide working capital.

DALLAS — Texas voters today will decide whether to issue $2 billion of bonds for veterans housing, partner with the Veterans Administration on a South Texas hospital, and redirect a $450 million education fund toward the creation of more top-tier universities.

CHICAGO — Though student demand remains strong, the recession is taking its toll on tuition and fee revenue at some private higher education institutions, and the stress is expected to hurt the operating performance of some schools, especially in the Midwest and mid-Atlantic regions, a new report being released today from Moody’s Investors Service found.

The University of Arkansas Board of Trustees unanimously approved a $30 million revenue bond issue to finance a new residence hall and an outdoor sports complex at the University of Arkansas at Little Rock.

The Texas Higher Education Coordinating Board on Thursday approved a proposal by the University of North Texas System for a 28,000-seat football stadium that will be financed in part with $38 million of student fee revenue bonds.

The Dormitory Authority of the State of New York at its board meeting yesterday gave final approval for $1 billion of bonds to finance workers’ compensation settlements with New York State and $520 million of debt for two colleges.

DALLAS — If Texas voters approve Proposition 4 next week, the state would invest $450 million toward adding seven Tier 1 universities in hopes of closing an educational gap with other large states.

WASHINGTON — The Internal Revenue Service has determined that bonds issued by a university medical school to finance or refinance items used by a nonprofit hospital are considered obligations of a state governmental unit and therefore tax-exempt, the IRS said in a private-letter ruling released this week.

The municipal market remained unchanged to slightly firmer yesterday, as the Alabama Public School and College ­Authority came to market with a $680 million refunding.

Moody’s Investors Service last week revised the outlook on Loyola University of Chicago’s A3 credit to stable from negative because of strong operating performance and cash flow as well as operating improvement initiatives being undertaken by the university’s health system.

Three professors from Willamette University have published a study reaching a surprising conclusion — municipalities do not sell more bonds when federal tax rates go up.

Stanford University has promoted Odile Disch-Bhadkamkar to the new position of treasurer. Her previous post was senior director of finance and bondholder relations.

WASHINGTON — Groups representing student loan bond issuers, port authorities, and airports are asking Congress to permanently exempt private-activity bonds from the alternative minimum tax and allow all current PABs to be refinanced to obtain the exemption

The Dormitory Authority of the State of New York goes to market today with the state’s first qualified school construction bond deal. DASNY is marketing at least $50 million of QSCBs while at the same time offering $250 million of Build America Bonds and $99.8 million of tax-exempt bonds all on the state’s personal income tax credit.

Standard & Poor’s upgraded the University of Northern Iowa’s academic building revenue bonds one notch to A-plus in recognition of its strong state support. The school’s dormitory revenue bonds were affirmed at BBB-plus.

Arizona Gov. Jan Brewer last week released $9 million of federal stimulus funds to community college districts, with another $20 million to come when the governing boards vote to accept the money.

CHICAGO - The Wayne State University Board of Governors plans to enter the market this week with $112 million of fixed-rate bonds to refund outstanding debt and terminate a pair of interest rate swaps.