Higher education bonds

WASHINGTON - The Treasury Department Friday released "how-to" guidance on the stimulus law's new taxable Build America Bond and Recovery Zone Economic Development Bond programs, as well as allocations for the qualified zone academy bond and qualified school construction bond tax-credit programs.

DALLAS — Texas Southern University’s revenue financing system bonds have fallen below investment grade on the Fitch Ratings scale. The agency downgraded $99 million of outstanding bonds to BB-plus with a negative outlook from BBB.

Supporters of the Federal Family Education Loan program are maneuvering to save it as Congress moves forward with budget resolutions that would set spending goals based on President Obama's proposed fiscal 2010 budget, which calls for FFEL's elimination.

The Alabama Public School and College Authority is experiencing problems with a swap that it may have to pay $55 million to terminate.

State officials will still move ahead with plans to potentially merge the Massachusetts Health and Educational Facilities Authority with the Massachusetts Development Finance Agency despite the fact that state Sen. Marian Walsh Tuesday announced that she would relinquish her new role at MassHEFA.

After a seven-year hiatus from bonding, the University of Medicine and Dentistry of New Jersey today plans to sell $253 million of revenue refunding bonds with a special "lockbox" structure to secure debt service payments.

Northern Arizona University said it will cut 45 jobs and close four satellite campuses after its state funding for fiscal 2009 was cut by $21 million as part of January’s budget-balancing bill.

Fresh from a successful taxable debt sale and a downgrade, Cornell University is back in the market with $305 million of tax-exempt bonds this week with a retail order period expected to begin tomorrow with institutional pricing on Wednesday. The Dormitory Authority of the State of New York will issue the bonds.

Massachusetts Gov. Deval Patrick's administration last week announced that it will begin evaluating a potential merger of the Massachusetts Health and Educational Facilities Authority and the Massachusetts Development Finance Agency in an effort to cut expenditures and create efficiencies between the two entities, yet critics say the move could increase borrowing costs for colleges and hospitals throughout the state.

The University of Connecticut March 30 will sell $150 million of fixed-rate, tax-exempt bonds to help finance new buildings and campus renovations, with the state paying debt service on the new-money debt.

WASHINGTON - The Virginia Resources Authority next week will come to market with debt to help finance restoration of the Chesapeake Bay, while the Virginia College Building Authority will sell bonds to pay for various projects.

Brevard College was downgraded by Fitch Ratings last week due to declining enrollment and negative operating margins for the last two fiscal years.

CHICAGO - Indiana's Purdue University is set to enter the market as soon as today with $113 million of student fee revenue bonds.

The Dormitory Authority of the State of New York yesterday announced the selection of a new slate of underwriters and gave preliminary and final approval to sales of $772.6 million of debt at its monthly board meeting.

BRADENTON, Fla. - The Tennessee State School Bond Authority today hopes to price $133.1 million of new and refunding revenue bonds for various colleges - an effort underscored with the launch of a new Web site to attract retail and in-state buyers.

DALLAS - The Maricopa County, Ariz., Community College District will use proceeds from today's competitive sale of $220 million of general obligation bonds to complete more than half the work promised to voters in 2004.

CHICAGO - Buoyed by healthy finances despite a slight cut in state appropriations, Indiana University will enter the market today with $75 million of double-A rated revenue bonds that will help finance its capital improvement plans.

SAN FRANCISCO - After 16 years as an investment banker with Lehman Brothers and successor Barclays Capital, Peter J. Taylor was appointed last week as chief financial officer and executive vice president of the University of California system.

The University of Medicine and Dentistry of New Jersey plans to refinance up to $575 million of debt before April 15, in part to avoid accelerated debt payments on a series of outstanding variable-rate bonds.

North Carolina Gov. Beverly Perdue announced a biennial budget plan on Tuesday that would not authorize any new debt issuance in fiscal 2010 as the state seeks to close a $3.4 billion budget shortfall.