Higher education bonds

Standard & Poor’s last week downgraded Illinois Wesleyan University’s underlying rating to BBB-plus from A-minus due to the school’s ongoing operating deficits.

DALLAS - On the heels of a Fitch Ratings downgrade, the University of Oklahoma will issue $65.8 million of revenue bonds after the first of the year for construction and renovation of buildings on the flagship Norman campus.

CHICAGO - Loyola University of Chicago has stepped up to help its ailing health system with an infusion of $19 million in cash, a move that staved off the system's violation of bank liquidity terms and the loss of its investment grade credit.

CHICAGO - Fitch Ratings last week rated the Urbana, Ill.-based Carle Foundation's upcoming $250 million bond sale AA-minus and assigned an "evolving" outlook due to the uncertain outcome and the fiscal impact of its merger discussions with an affiliated physicians' group.

The Empire State Development Corp. gave final approval to a controversial plan to expand Columbia University's campus in Manhattan at its monthly board meeting yesterday. The plan is almost certain to wind up in the courts as property owners in the area fight the use of eminent domain.

DALLAS - The Louisiana State Bond Commission gave its tentative approval on Thursday to $210 million of revenue bonds to finance the state's student loan program, even though there is little chance the bonds can be issued until market conditions improve.

New York State should consider privatizing assets and using design-build strategies to fill funding gaps for capital projects, a state commission said in a preliminary report yesterday. The report identifies transportation and education projects as candidates for public-private partnerships.

DALLAS - The U.S. Justice Department is investigating a 2002 bond sale by the University of New Mexico as part of an investigation into possible violations of securities laws, officials said.

Yeshiva University's tax-exempt bonds have been hammered this week as the private, nonprofit university acknowledged potential losses in an investment scheme and a shrinking endowment.

The Arkansas Student Loan Authority will have until the end of September 2010 to repay the State Board of Finance for its draw on an $80 million line of credit after the agency was unable to issue bonds for its student loan program.

DALLAS - Attempting to defy a declining economy and challenging markets, Tucson's Rio Nuevo downtown development district is issuing $78 million of debt to speed restoration of the city's core.

DALLAS - Louisiana's constitutional limit on annual debt service may derail Gov. Bobby Jindal's plans to use the proceeds from $400 million of revenue bonds to finance the proposed new $1.2 billion Louisiana State University teaching hospital in downtown New Orleans.

DALLAS — Texas debt issuance drops dramatically this week as the bond industry looks toward a holiday respite.

The Massachusetts Health and Educational Facilities Financing Authority last week approved up to $275 million of new-money borrowing for the Massachusetts Institute of Technology.

The Dormitory Authority of the State of New York yesterday gave final approval to issue $776 million of bonds and preliminary approval for another $600 million of bonds. DASNY's board also adopted the recommendations by a state commission to increase participation of minority- and women-owned underwriting firms in the issuance of state-backed debt.

Facilities at the University of Arkansas’ main campus at Fayetteville need at least $215 million of maintenance, chancellor G. David Gearhart told UA System trustees last week. He said 75 university buildings need extensive upgrades after years of deferring maintenance.

Fitch Ratings this week downgraded $19.5 million of facility revenue bonds issued by Midland Lutheran College to BB from BB-plus.

WASHINGTON - Federal regulators yesterday announced $800 billion of new lending and debt purchasing programs designed to free up the housing, auto, credit card and student loan markets, but said they will not cover tax-exempt securities, drawing concerns from the muni market.

Moody’s Investors Service has lowered its rating on $83.9 million of revenue bonds issued by the University of Central Arkansas to A3 from A2 and put the credit on the watch list for further downgrades.

WASHINGTON - Georgetown University this week restructured $115 million of auction-rate securities into variable-rate demand obligations using an increasingly popular technique: leveraging joint support from both the liquidity provider and the issuer.