Higher education bonds

DALLAS - The College of Santa Fe is on the verge of closing and defaulting on $30 million of debt after a year of efforts to save New Mexico's oldest private university.

The University of Maryland expects to take bids for $144 million of revenue bonds on Tuesday with a portion of the deal pricing as Build America Bonds.

Standard & Poor’s revised its credit outlook on Howard University to negative as the school and its affiliated hospital have suffered operating losses.

BRADENTON, Fla. - Confusion over the outlook for the rating of the Alabama Public School and College Authority may have contributed to the failure of the refunding and new-money deal to sell last week, several market players said on Friday.

BRADENTON, Fla. - The Alabama Public School and College Authority tomorrow plans to competitively sell $324.4 million of refunding and new capital improvement bonds.

DALLAS - The University of Texas System is preparing the state's largest debt issue so far this year: $625 million of revenue bonds, including $330 million of Build America Bonds.

Administrators at the Maricopa County Community College District have asked the district board to increase the property tax rate to bring in an additional 2% in revenue, or about $7.5 million a year. The current tax generates $360 million a year.

Arizona State University in August will open its new College of Nursing and Health Innovation in downtown Phoenix that has been built with proceeds from bonds issued by the city.

Moody’s Investors Service last week downgraded Ohio Northern University’s $80 million of debt to A3 from A2 and warned of further action by assigning a negative outlook as the school struggles with investment losses and enrollment.

DALLAS — Standard & Poor’s raised its rating on the Texas Southmost College District’s general obligation debt to AA with a stable outlook from A-plus, as the issuer prepares to come to market next month.

The Northside Independent School District of San Antonio disclosed yesterday that the IRS has closed a random audit of $170 million of variable-rate bonds they sold in 2003 with no change to the tax-exempt status.

The Dormitory Authority of the State of New York yesterday approved up to $1.27 billion of refundings of state-backed debt and took actions to deal with the downgrade of a liquidity provider used by some of its conduit borrowers.

DALLAS - The Lower Rio Grande Valley would get its first medical school under legislation awaiting Texas Gov. Rick Perry's signature.

Illinois State University last week lost the positive outlook from Moody’s Investors Service on its A2 rating due primarily to the state’s budget struggles.

When the Hudson Falls, N.Y., Central School District needed to borrow for capital spending last year it went on its own to the market. This year it's going through the Dormitory Authority of the State of New York and it's not alone.

Arizona State University officials said last week they may ask that funding for an expansion of its downtown Phoenix campus be included in the city’s next general obligation bond election.

Moody’s Investors Service last week downgraded the University System of Georgia Board of Regents’ Series 2003 project revenue bonds to Aa3 from Aa2 with a stable outlook.

CHICAGO - The South Dakota Board of Regents will sell $90 million of revenue bonds - its largest deal ever - under the taxable Build America Bond program today to finance various projects at four of its universities.

Congress should consider banning colleges from using tax-exempt bonds to finance sports facilities if it fears high-profile collegiate sports programs are becoming too commercial, a new report from the Congressional Budget Office released this week recommends.

Moody’s Investors Service on Monday downgraded Illinois Wesleyan University’s rating to Baa1 from A3 on $52.2 million of debt due to ongoing operating deficits and weak cash flow.