Dormitory Authority Board Acts On Financings

Albany - - At its monthly meeting here today, the Board of the Dormitory Authority of the State of New York (DASNY) gave final and initial approval to a series of bond financings, restructurings and conversions that will help support health care facilities, nursing homes, colleges and universities across New York State.

The Board gave final approval to the following new financings:

New York University. The Board gave final approval for the negotiated sale of one or more series of fixed rate bonds with maturities not to exceed 40 years in an amount not to exceed $690 million. Proceeds from the sale of the bonds will be used for the acquisition and renovation of both an existing office building and an existing residential facility; repayment of a line of credit used to redeem NYU’s auction rate Series 2004B Bonds; and for various renovations, deferred maintenance, improvements and equipping of facilities at the Washington Square Campus. Lead Manager is Morgan Stanley; Bond Counsel is Nixon Peabody LLP; Underwriter’s Counsel is Orrick Herrington & Sutcliffe LLP.

The Friendly Home. The Board gave final approval for the negotiated sale of one series of 30-year variable rate, tax-exempt Series 2008 Bonds in an amount not to exceed $18 million. Proceeds from the sale of the bonds will be used for new construction, renovations, and equipment purchases. Lead Manager is Ziegler Capital Markets; Bond Counsel is Nixon Peabody, LLP; Underwriter’s Counsel is Trespasz & Marquardt, LLP.

Fordham University. The Board gave final approval for the negotiated sale of one series of fixed rate, tax-exempt Series 2008B Bonds with a term not to exceed 31 years and of an amount not to exceed $125 million. The proceeds from the sale of the bonds will used for construction of a new, multi-level residential facility at the Rose Hill Campus, and pay for renovations at various campus locations. Lead Manager is Citi; Bond Counsel is Hawkins and Wood, LLP; Underwriter’s Counsel is Hiscock & Barclay, LLP.

The Board gave single-step approvals to the following auction rate restructurings:

St. John’s University. The Board gave final approval for the restructuring of some or all of the Ambac and/or MBIA-insured auction rate bonds to include leaving the bond insurance policies in place, converting to a mode allowable under existing documents and inserting a direct pay letter of credit in front of the bond insurance. with enhanced fixed and/or variable rate bonds with a liquidity facility in the amount of $186.5 million. The reoffered or refunded bonds will be used to convert or refund some or all of the auction rate bonds. Lead Manager is Morgan Stanley; Bond Counsel is Nixon Peabody; Underwriter’s Counsel is Clifford Chance LLP.

New York City Health and Hospitals Corporation. The Board gave final approval for the restructuring of conversions and/or refunding of a portion of fixed-rate bonds and the MBIA-insured auction rate bonds with enhanced and/or unenhanced fixed rate bonds in the amount of $715.8 million. Multiple series of bonds will be used for the advance refunding of 1998 Series 1 fixed-rate bonds and the current refunding of the 2001 Series 2 Bonds to a fixed rate mode. Lead Manager is Morgan Stanley / Lehman Brothers; Bond Counsel is Orrick, Herrington & Sutcliffe; Underwriter’s Counsel is Clifford Chance US LLP.

University of Rochester. The board gave final approval for the restructuring of conversions of MBIA-insured auction rate bonds to variable rate demand bonds with direct pay letters of credit in the amount of $164.4 million. These letter of credit restructurings will be used to augment or replace the existing bond insurance policies as the primary source of repayment.

State/Voluntary Agency Mental Hygiene Projects. The Board adopted documents to effectuate the termination of bond insurance policies, adding another restructuring option regarding certain insured auction rate and variable rate bonds. The Authority now expects to convert the existing bonds to a mode allowable under existing documents and/or terminate the bond insurance policies and/or refund the existing bonds. The bonds, originally sold in multiple series in 2003, were insured by MBIA, XLCA and Ambac. Bond Counsel is Hawkins Delafield & Wood LLP. Lead Manager and Underwriter’s Counsel are to be determined.

The Board gave single-step approvals to the following financings:

State University Dormitory Facilities. The board gave approval to the negotiated sale of one or more series of tax-exempt, fixed and/or variable-rate bonds in an amount not to exceed $225 million for a term not to exceed 30 years. The money from the sale of these bonds will be used to fund various dormitory capital projects at campuses throughout the State University of New York system. Bond Counsel is Squire, Sanders, & Dempsey, LLP; Lead Manager and Underwriter’s Counsel are still to be determined.

Municipal Health Facilities (PCDC). The Board gave approval to the negotiated sale of one or more series of tax-exempt fixed rate Series 2008 Bonds in an amount not to exceed $35 million. The final maturity of the bonds will not exceed the maturity of the bonds to be refunded. Wachovia Bank National Association is the Lead Manager; Winston & Strawn, LLP is the Bond Counsel; Underwriter’s Counsel is still to be determined.

The Board gave initial approval to the following new financings:

Smithtown Special Library District. The Board gave initial approval to the competitive or negotiated sale of a bond issue in an amount not to exceed $21 million in 20-year tax-exempt, fixed rate Series 2008 Bonds. Proceeds from the sale of bonds will be used for the construction of a new branch library at a former armory, and renovation to Smithtown’s main library, the Commack branch library and the Kings Park branch library.

Bronx Lebanon Hospital. The Board gave initial approval to the negotiated sale of 27-year fixed and/or variable rate, tax-exempt Series 2008 Bonds in an amount not to exceed $38.5 million. Proceeds from the sale of bonds will be used for the construction of a nine-story, 66,000 square foot ambulatory care center.

St. Lawrence University. The Board gave initial approval to the negotiated sale of one or more series of tax-exempt, variable rate bonds with maturities not to exceed 30 years in an amount not to exceed $52 million. The proceeds from the sale of bonds will be used for various construction, renovation, renewal, replacement and maintenance projects throughout the University’s campus, and refinancing of the St. Lawrence County IDA Civic Facility Revenue Bonds, Series 1998A, Series 1998B, and Series 1996.

The Board is next scheduled to meet June 25 in Albany.