Higher education bonds

William Paterson University in Wayne, N.J. had its credit rating cut one notch with a negative outlook by Moody's Investors Service, which cited the regional public college's weakened student demand.

St. Olaf College in Minnesota has its rating affirmed by Moody’s Investors Service as the school heads into the market with a $54.4 million new money and refinancing issue.

The College of DuPage board hired a consultant after putting its treasurer and controller on paid administrative leave after questions were raised over their investment decisions.

The Virginia Supreme Court is ordering a lower court to take another look at legal efforts to prevent the financially troubled Sweet Briar College from closing.

The Long Beach Community College District in California has paid the Internal Revenue Service about $1.01 million to settle tax issues concerning its $48.37 million general obligation bond issue from 2008.

The Texas Legislature’s 84th Session closed with a $209 billion biennial budget, $3 billion of bonds for university construction and a proposed $3 billion of additional funding for highways.

The Internal Revenue Service had raised concerns about certificates of participation sold in 2003 to finance student housing at Western Carolina University, but ultimately closed the audit with no change to the COPs’ tax exemption.

Corvias Campus Living privately placed $548.3 million of taxable bonds for a 65-year P3 student housing pact with the University System of Georgia.

The Texas Senate approved a bill already passed by the House that provides $3 billion of tuition revenue bonds for the state’s colleges and universities.

El Paso Children’s Hospital filed for Chapter 11 bankruptcy protection on May 19 after negotiations over a debt to county-owned University Medical Center fell apart, officials said.

Seven months after winning voter approval of one of its largest bond proposals, Austin Community College District will offer the market $175 million of bonds supported by its fast-growing tax base.

The Dormitory Authority of the State of New York has approved more than $3.22 billion in new financing for educational and healthcare institutions.

Louisiana, grappling with a $1.6 billion budget deficit that could hit its colleges and universities, has already cut state higher education funding by more than all but one other state, a study found.

Moody's Investors Service and Standard & Poor's both downgraded the California Institute of May 11 ahead of a $400 million taxable bond deal it plans to price on May 14.

Standard & Poor's on May 5 revised its outlook to negative on Atlanta’s Morehouse College bonds due to declining enrollment and increasing operating pressure.

The Tennessee State School Bond Authority closed on a bond offering May 7 that saved the state $12.9 million in addition to financing construction projects at colleges and universities.

Louisiana State University emphasized that it is not filing for bankruptcy; the school was criticized for a clumsy explanation of its financial position, leading to cancellation of a bond deal.

Uncertainty about Louisiana's higher education funding led Standard & Poor's to place five institutions on negative CreditWatch on April 28.

Northwestern University is offering more than $600 million of its gilt-edged paper to taxable and tax-exempt buyers to refund some debt and raise financing for projects in an ongoing $2.6 billion capital program.

Louisiana State University on Friday pulled a $114.5 million bond offering that had priced two days earlier after investors withdrew from the deal when concerns emerged over the institution’s financial status.