Higher education bonds

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.

The Dormitory Authority of the State of New York could issue bonds on behalf of state school districts under the qualified school construction bond program, a new federal program that allocates $22 billion of bond volume cap nationwide over two years for tax-credit bonds.

New York Gov. David Paterson created a task force last week to study partnerships between higher education and industry.

CHICAGO - The triple-A rated University of Michigan enters the market tomorrow with $225 million of debt - the first piece in about $315 million of borrowing planned through early June that includes $50 million of Build America Bonds to finance a new women's and children's hospital and stadium renovations.

BRADENTON, Fla. - A Kentucky lawmaker said he will raise questions today about whether a lease transaction to finance the purchase of a hospital exposed a flagship state university to risks posed by an underlying swap and letter of credit.

The Pennsylvania Higher Education Assistance Agency has disclosed that the Internal Revenue Service is requesting information for an audit of $150 million of student loan revenue bonds it issued in 1997.

CHICAGO - The Illinois Student Assistance Commission as soon as Thursday will enter the market with a unique tax-exempt $50 million sale of student loan revenue bonds that along with a federal guarantee of 97% on the underlying loans will carry the full faith and credit pledge of the state of Illinois and monoline insurance.

New York Gov. David Paterson yesterday nominated a new chairman to the Dormitory Authority of the State of New York, the second largest issuer of bonds in the country. Paterson picked Alfonso L. Carney Jr. to replace Gail Gordon, who has served as chairwoman for 11 of the 14 years she’s been on the board.

The Massachusetts Health and Educational Facilities Finance Authority will head to market in the next two weeks with $200 million of tax-exempt, new-money debt on behalf of Partners HealthCare System.

DALLAS — This week’s Texas docket includes two sizeable issues, a multi-tranche sale from a north Dallas suburb, and a couple of school district offerings.

The Dormitory Authority of the State of New York yesterday approved $1.8 billion of borrowing for school construction and capital improvements throughout the state, while agency officials are also evaluating issuing personal income tax bonds through the federal Build America Bonds program.