DASNY Board Approves Multiple Financings

Board Adopts Resolution to Boost Diversity in Procurement of Outside Legal Services

Albany - - At its monthly meeting here today, the Board of the Dormitory Authority of the State of New York (DASNY) approved bond financings that will help institutions of higher education and healthcare facilities across the state create jobs and provide New Yorkers with needed services and opportunities.

In a significant policy development, the Board approved a resolution to implement the legal procurement recommendations of Governor Paterson’s Executive Order 10 Task Force to increase the participation of qualified legal firms owned by minority members and women in providing outside counsel services to the Authority.

“The comprehensive best practices that we have adopted signal a new approach in the way the Dormitory Authority will seek out, retain and evaluate the law firms that provide us with critical legal services,” said Paul T. Williams, Jr., Executive Director of the Dormitory Authority and Chairman of the EO 10 Task Force. “Putting together a diverse team of legal experts will help foster creativity and competition and will ensure the highest level of service to the Authority.”

The Board gave final approval to the following new financings:

Nassau County BOCES. The Board approved the negotiated sale of tax-exempt, 20-year fixed-rate bonds in an amount not to exceed $18.25 million. Proceeds from the sale of the bonds are expected to be used to purchase property at One Merrick Avenue that is currently being leased by the Nassau County BOCES. Lead Manager is Loop Capital Markets LLC; Bond Counsel is Orrick, Herrington & Sutcliffe LLP; Underwriter’s Counsel is Squire Sanders & Dempsey LLP.

Saint Lawrence University (Canton). The Board approved the conversion of Letter of Credit-backed, variable-rate demand bonds in weekly-rate mode to unenhanced obligations in either term-rate mode or fixed-rate mode with an intermediate term of between five and 10 years to terminate the existing RBS Citizens NA Letter of Credit as the primary source of repayment. Underwriter is Morgan Stanley; Bond Counsel is Squire Sanders & Dempsey LLP; Underwriter’s Counsel is Hawkins, Delafield & Wood LLP.

The Board approved the following single-approval financing resolutions:

Consolidated Services Contract Refunding. The Board approved the negotiated sale of one or more series of tax-exempt, fixed-rate and/or variable-rate bonds in an amount not to exceed $795 million and in maturities not to exceed those of the bonds to be refunded. Proceeds from the sale of the bonds are expected to be used to refund certain maturities of various Dormitory Authority state-supported bonds; as well as to refund certain maturities of Empire State Development Corporation bonds, and Housing Finance Agency bonds.

Personal Income Tax Revenue Bond Program. The Board approved the negotiated sale of one or more series of tax-exempt and/or taxable fixed-rate and/or variable-rate bonds in an amount not to exceed $470 million and in maturities not to exceed those of the bonds to be refunded. Proceeds from the sale of the bonds are expected to be used to refund Dormitory Authority Mental Health Services Facilities Improvement Series 2003 Bonds. Lead Manager is JP Morgan and Ramirez; Bond Counsel is Hawkins Delafield & Wood LLP; Underwriter’s Counsel is Harris Beach PLLC.

The Board approved the following resolutions to proceed with new financings:

North Shore Long Island Jewish Medical Center. The Board approved the negotiated sale of one or more series of 30-year, tax-exempt, variable-rate and/or fixed-rate bonds in an amount totaling approximately $419.1 million. Proceeds from the sale of the bonds are expected to be used to construct a Women’s Tower at the LIJ Campus including renovations and upgrades to accommodate the project, and to construct a Bioskills Education Center.

University of Rochester. The Board approved the negotiated sale of one or more series of tax-exempt, fixed and/or variable-rate bonds with terms not to exceed 30 years and in an amount not to exceed $140 million. Proceeds from the sale of the bonds are expected to be used to fund various construction and renovation projects at the School of Medicine and Dentistry, and various projects at Strong Memorial Hospital, as well as to refund revenue bond series 1997A, 1998A, 1999B, and 2000A.

United Memorial Medical Center Obligated Group (Batavia). The Board approved the negotiated sale of 25-year, tax-exempt fixed and/or variable-rate bonds in an amount not to exceed $17.85 million. Proceeds from the sale of the bonds are expected to be used to renovate and expand the Medical Center’s surgical services department.

Ithaca College. The Board approved the Conversion of Letter of Credit-backed variable-rate demand bonds in the weekly rate mode to unenhanced obligations in either term-rate mode or fixed-rate mode with an intermediate term of between 5 and 10 years to terminate the existing RBS Citizens NA letter of credit as the primary source of repayment. Lead Manager is RBC Capital Markets; Bond Counsel is Harris Beach & Wilcox PLLC; Underwriter’s Counsel is Hodgson Russ LLP.

The Board also approved supplemental resolutions authorizing the College of New Rochelle, St. John Fisher College, and Long Island University to issue bonds with a Federal Home Loan Bank wrap of the existing Citizen’s Bank NA letters of credit provided for in previously adopted resolutions.

The Board is scheduled to meet next on June 24 in Albany.

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The Dormitory Authority, founded in 1944, is the largest higher education, health care and public-purpose bonding and construction authority in the nation. The Dormitory Authority has a construction pipeline of 734 projects valued at $7.4 billion. The Authority has an outstanding bond portfolio of more than $38 billion.