DASNY Board Acts on Financings & Investment Guidelines

Albany - - At its monthly meeting here today, the Board of the Dormitory Authority of the State of New York (DASNY) approved a series of bond financings, restructurings and conversions valued at $1.83 billion that will help support the growth of various health care facilities, colleges and universities and public libraries across New York State.

The Board also adopted a resolution that gives Authority clients greater flexibility in how they invest their bond proceeds.

The Board gave final approval to the following new financings:

Oneida Herkimer Madison BOCES. The Board gave final approval for the negotiated sale of 20-year, fixed-rate, tax-exempt bonds in an amount not to exceed $40 million. Proceeds from sale of the bonds will be used to renovate the Middle Settlement Road campus. Lead Manager is RBC Capital Markets; Bond Counsel is Hiscock & Barclay, LLP; Underwriter’s Counsel is Bond, Schoeneck & King LLP.

Bronx-Lebanon Hospital Center. The Board gave final approval for the negotiated sale of 27-year fixed and/or variable-rate, tax-exempt bonds in an amount not to exceed $38.5 million. Proceeds from sale of these bonds will be used to construct a nine-story ambulatory care center. Lead Manager is Roosevelt & Cross, Inc.; Bond Counsel is Winston & Strawn LLP; Underwriter’s Counsel is Hawkins, Delafield & Wood LLP.

Smithtown Special Library District. The Board gave final approval to the negotiated sale of 20-year tax-exempt, fixed-rate bonds in an amount not to exceed $21 million. Proceeds from sale of these bonds will be used to build a new branch library in Nesconset and renovate existing libraries in Smithtown, Commack, and Kings Park. Lead Manager is Roosevelt & Cross, Inc.; Bond Counsel is Winston & Strawn LLP; Underwriter’s Counsel is Orrick Herrington & Sutcliffe LLP.

The Board approved the following restructurings:

Mental Health Services Facilities Program. The Board approved the inclusion of all various auction rate and variable rate demand bonds for potential conversion and/or refunding with enhanced and/or unenhanced fixed and/or variable rate bonds with a liquidity facility in an amount not to exceed $1.45 billion. The bonds were initially sold in multiple series in 2003. Lead Manager is JP Morgan; Bond Counsel is Hawkins Delafield & Wood LLP.

University of Rochester. The Board approved the conversion of MBIA-insured variable rate demand bonds with direct pay letters of credit to replace the existing bond insurance policies as the primary source of repayment. The bonds, totaling $111.1 million, were initially sold in two series in 2006. Lead Managers are Citi and Lehman Brothers; Bond Counsel is Hawkins Delafield and Wood LLP; Underwriter’s Counsel is Clifford Chance US LLP.

The Board gave initial approval to the following new financings:

Rochester Institute of Technology. The Board gave initial approval to the negotiated sale of one or more series of tax-exempt, fixed and/or variable-rate 30-year bonds in an amount not to exceed $85 million. Proceeds from sale of these bonds will be used to construct a mixed-use residential-housing complex and update the Institute’s East Side and West Side heating and cooling plants.

St. John Fisher College (Rochester). The Board gave initial approval to the negotiated sale of one or more series of fixed and/or variable-rate 27-year bonds in an amount not to exceed $14 million. Proceeds from sale of these bonds will be used to refinance a line of credit that the college used to temporarily pay off bonds issued through the Monroe County Industrial Development Agency.

LeMoyne College (Syracuse). The Board gave initial approval to the negotiated sale of 30-year fixed and/or variable-rate tax-exempt and/or taxable bonds in an amount not to exceed $14 million. Proceeds from sale of these bonds will be used to renovate Harrison, Grewen and Foery Halls and to construct new lacrosse and soccer fields.

Wagner College (Staten Island). The Board gave initial approval to the negotiated sale of one or more series of tax-exempt, fixed and/or variable-rate 30-year bonds in an amount not to exceed $45 million. Proceeds from sale of the bonds will be used to construct a new 200-bed residence hall and to refund the College’s Series 1998 bonds.

The Board approved the following Tax-Exempt Equipment Leasing Program (TELP) resolution:

St. Luke’s Roosevelt Hospital Center. The Board approved a lease-financing transaction of $12.4 million that will enable the hospital to acquire equipment for its respiratory, medical, surgical, catheterization, and information technology departments. Equipment acquired through the lease-sublease financing under the Authority’s TELP program will be owned by the hospital after all outstanding lease payments are made.

In a policy matter, the Board approved a resolution to amend the Authority’s Investment Guidelines to provide more options on how bond proceeds are invested, including the highest rated commercial paper, bankers’ acceptances and money market mutual funds. With the greater flexibility created by this resolution, the Authority’s clients may experience higher investment yields while still maintaining safety and liquidity. This policy change is the result of conversations with the Authority’s client institutions and on-going internal reviews of the Authority’s financing process.

The Board is next scheduled to meet September 24 in New York City.