Munis

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.

DALLAS - The deepening recession is putting Texas schools and universities in a tighter squeeze as investment losses have sharply reduced two funds used to guarantee bond issues.

The Department of Education yesterday announced that it will purchase student loans on a short-term basis that were issued for the 2007-2008 academic year, using untapped authority Congress granted it in legislation enacted in May.

The University of Oregon received a conditional-use permit for its new basketball arena this week, closing a long and difficult approval process that’s delayed the project many times.

The Kansas Board of Regents will meet this week to decide how to cut an estimated $114.4 million from the state’s higher education system over the next two years.

DALLAS - The University of Texas System regents last week shelved plans to sell future production from oil and gas properties to boost the Permanent University Fund until prices rebound.

CHICAGO - Catholic elementary and high schools are increasingly turning to the tax-exempt debt market to finance their capital projects, according to bankers at Ziegler Capital Markets, which recently closed a deal for the National Shrine of the Little Flower in Royal Oak, Mich.

CHICAGO - The Illinois Finance Authority board yesterday advanced plans for more than $1.7 billion of bonding by a dozen borrowers, including the University of Chicago, and hired a new executive director - the state's former top fiscal officer, John Filan.

WASHINGTON - Triple-A rated Virginia will come to market with $265 million of general obligation bonds today and tomorrow in a negotiated deal, straying from the state's traditional competitive route in response to an unstable market and higher demand from retail investors, officials said.

WASHINGTON - The Department of Education plans to provide liquidity support to the student loan market through a new commercial paper conduit facility for the purchase of loans made as far back as October 2003, and also plans to renew a high-profile student loan liquidity program for an additional academic year.

Despite a faltering national economy, voters by and large gave a very favorable reception to bond referendums on Tuesday's ballot.

WASHINGTON - An insufficient number of institutional investors agreed to tender at less than par roughly $6 billion of outstanding taxable student-loan-related securities issued on behalf of the Brazos Higher Education Service Corp. before a preliminary deadline on Friday, casting a cloud over a proposed restructuring of the securities into term floating-rate notes.