Higher education bonds

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.

DALLAS - Federal stimulus funding will provide a cushion for colleges and universities as they scramble to cut costs over the next two years, but prospects for 2012 and beyond are extremely uncertain, analysts at Standard & Poor's said yesterday.

CHICAGO - Southern Illinois University will enter the market as soon as next Thursday with $54 million of tax-exempt and taxable Build America Bonds in a deal led by BMO Capital Markets, which the school picked due to its work on a handful of similarly structured BAB transactions over the last two weeks.

Standard & Poor’s has affirmed its AAA rating on the Dallas County Community College District’s outstanding debt and its upcoming $110 million general obligation bond sale.

The National Academy of Sciences on Thursday aims to sell $57.5 million of variable-rate revenue debt to refund 1999 bonds. The deal is rated triple-A by Moody’s Investors Service and Standard & Poor’s based on a letter of credit from Bank of America.

President Obama on Friday ratcheted up his push to eliminate the Federal Family Education Loan program, saying he's prepared to fight "wasteful subsidies" to student lenders..

The Massachusetts Health and Educational Facilities Authority last week created an eight-member advisory committee to evaluate a possible merger with its sister authority, the Massachusetts Development Finance Agency.

CHICAGO - Barring any significant shift in the yield curve or in investor interest, the University of Minnesota will enter the market as soon as today with $35 million of taxable, general obligation Build America Bonds that officials believe will mark the first public offering of securities under the new federal program.

The Massachusetts Health and Educational Facilities Authority Thursday will create a merger committee to move forward with Gov. Deval Patrick's plans to combine the authority with the Massachusetts Development Finance Agency, although market participants worry the initiative may increase borrowing fees.

BRADENTON, Fla. - The negative watch placed on the Alabama Public School and College Authority by Standard & Poor's on March 27 is unwarranted, state finance director Jim Main said this week.

The Vermont Student Assistance Corp. has been notified by the Internal Revenue Service that $165 million of education loan revenue bonds it issued in 1998 may be taxable because of issues related to its tracking of loans and treatment of fees.