While the University attempts to maximize the use of philanthropy, grants, internal funds and state and federal appropriations to fund capital projects, the strategic use of both taxable and tax-exempt debt can provide additional support for mission-critical investments and increase financial flexibility.
The University recognizes that debt is a limited resource. Debt should be used prudently within the University鈥檚 constitutional and statutory authority for capital projects that are consistent with the mission and vision of the University. To ensure that these criteria are met, an analysis of the ongoing impact of the projects on the University鈥檚 finances must be performed in connection with any incurrence of debt.
System Facility Revenue Bonds Program
Provides generally long-term financing for acquisition, construction, renovation or expansion of various University facilities. The principal and interest of the bonds are payable from, and secured by a first lien on and pledge of, designated revenues of the University鈥檚 revenue-producing system facilities, including campus bookstore receipts, housing and dining charges, hospital and patient services, and parking collections, as well as certain assessed fees, such as recreational facility fees, stadium surcharges, and student activity fees, and a portion of tuition and fees attributable to such facilities (collectively, 鈥淪ystem Facilities Revenues鈥).
The University must continuously operate and maintain the facilities financed by the bonds and maintain sufficient rates and charges for use of such facilities as will allow the University to meet annual debt service requirements. Additionally, System Facilities Revenues, in aggregate, must at all times exceed 200% of the annual debt service requirements for the bonds in any given fiscal year.
| Credit Ratings | |
|---|---|
| Moody's Credit Rating (Archive) | Standard & Poor's Rating (Archive) |
| Aa1/Stable outlook for fixed rate bonds | AA+/Stable outlook for fixed rate bonds |
| P-1 rating for commercial paper | A-1+ rating for commercial paper |
| 午夜影院 Debt Capital Structure | ||
|---|---|---|
| Series | Final Maturity | Par Amount Outstanding |
| System Facilities 2009A (taxable) (pdf, Archive) | 11/1/39 | 213,590,000 |
| System Facilities 2010A (taxable) (pdf, Archive) | 11/1/41 | 252,285,000 |
| System Facilities 2013B (taxable) (pdf, Archive) | 11/1/43 | 150,000,000 |
| System Facilities 2014B (pdf, Archive) | 11/1/54 | 150,000,000 |
| System Facilities 2020A (taxable) (pdf, Archive) | 11/1/50 | 200,000,000 |
| System Facilities 2020B (pdf, Archive) | 11/1/30 | 190,200,000 |
| System Facilities 2024 (pdf, Archive) | 11/1/35 | 335,985,000 |
| Commercial Paper Program (pdf, Archive) | 11/1/35 | 0 |
| TOTAL | 1,492,060,000 | |
Commercial Paper Program
Provides flexibility in managing the University鈥檚 overall debt program and may be utilized for various University financing needs including, but not limited to A) capital projects, including the acquisition, construction, renovation or expansion of various University facilities, infrastructure or equipment, and B) providing a readily accessible source of funds for various working capital purposes.
Commercial Paper Notes (鈥淐P Notes鈥) may be issued in taxable or tax-exempt form under the Commercial Paper program up to an aggregate amount authorized by the Board of Curators. Only taxable CP Notes may be utilized for working capital purposes. The maximum term of any CP Note is 270 days, and no more than $100 million in CP Notes may mature within any seven calendar days.
CP Notes are limited obligations of the University payable solely out of and secured by a pledge of the University鈥檚 unrestricted revenues, which generally include state appropriations for general operations, student fee revenues, and all other operating revenues of the University other than System Facilities Revenues. Review the Offering Memorandum (pdf, Archive).
Debt Snapshot and Liquidity Reports
The Debt Snapshot Report (pdf, Archive) is a quarterly snapshot of the University鈥檚 debt structure.
The liquidity report (pdf, Archive) is available to our CP investors so they can better understand our investments and debts.