Higher education bonds

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.

CHICAGO — Ohio State University’s board of trustees this week approved a $1 billion expansion plan of the school’s medical center campus that will rely on $925 million of new-money bonds.

Lower-rated borrowers that couldn't meet the Dormitory Authority of the State of New York's stringent credit requirements are likely to find the door open a little wider in the near future if staff recommendations presented yesterday are implemented.

The Dormitory Authority of the State of New York approved the state's first qualified school construction bond deal at its monthly board meeting yesterday.

Louisiana Gov. Bobby Jindal last week asked two commissions studying state spending to find almost $1 billion in state budget cuts.

DALLAS - The Tyler Junior College District will upgrade and repair critical infrastructure and existing facilities at its campuses in the East Texas city of Tyler with proceeds from today's competitive sale of $24.5 million of 10-year maintenance tax notes.

Moody’s Investors Service last week downgraded Concordia University’s rating one notch to Baa1 on $22.8 million of outstanding debt issued in 1998. The school faces stagnant net tuition rates and reduced support from its governing body, the Lutheran Church-Missouri Synod, analysts said.

CHICAGO - Downtown Chicago-based Roosevelt University is planning to sell up to $210 million of new-money and refunding bonds later this year to raise funds for a new multi-use building that will include new student housing as part of its evolution from a commuter school to a residential urban campus.

CHICAGO - Kent State University in Ohio plans to enter the market tomorrow with $225 million of fixed-rate refunding bonds in a transaction that will reduce the school's variable-rate debt by nearly three-fourths and eliminate most of its outstanding swaps and letters of credit.

WASHINGTON — The House yesterday easily approved by a vote of 252 to 171 legislation that would eliminate the Federal Family Education Loan program, in line with the Obama administration’s push to require all federally guaranteed student loans to be issued directly by the federal government.

WASHINGTON - A group of municipal analysts is urging the Securities and Exchange Commission to require muni issuers to file with EMMA certain material event notices related to swaps, bank bonds, and liquidity facilities. But issuers and borrowers are warning that the proposed 10-day deadline for filing material event notices would be difficult or impossible to meet and are pushing for 30 days instead.