DASNY Board Acts On Not-For-Profit Financings

North Country hospital/Central New York retirement community/CUNY refunding and new money for Vassar College are advanced

Albany -- At its February 24th Board meeting, the Dormitory Authority of the State of New York (DASNY) approved more than $877 million in bond financings, refundings and private placements that will benefit educational, health care and other not-for-profit organizations across New York State.

The Board approved the following financings:

Nottingham Retirement Community, Inc. (Jamesville) The Board approved the negotiated sale of fixed-rate tax-exempt and taxable bonds in an amount not to exceed $19 million with a term of 16 years. Proceeds from the sale of the bonds are expected to be used to refund the Dormitory Authority’s Nottingham Retirement Community, Inc. Revenue Bonds, Series 1995. Lead Manager is Jefferies & Company; Bond Counsel is Winston & Strawn LLP; and Underwriter’s Counsel is Hodgson Russ, LLP.

Samaritan Hospital (Watertown). The Board approved the sale through a private placement of fixed-rate and/or variable-rate, tax-exempt bank qualified bonds to Key Bank in an amount not to exceed $30 million. Proceeds from the sale of the bonds are expected to convert $30 million of existing Series 2009A DASNY bonds to bank qualified bonds at a fixed rate. Placement Agent is to Key Banc Capital Markets Inc.; Bond Counsel is Harris Beach PLLC; and Placement Agent’s Counsel is Bond, Schoeneck & King, PLLC.

The Board approved the following resolution for single-approval financing:

Consolidated Service Contract Refunding/City University System Refunding. The Board approved two refundings with respect to certain outstanding State-supported bonds issued by DASNY, including various City University System Bonds (CUNY Bonds), as well as certain outstanding State-supported bonds issued by certain other State authorities. The first is the negotiated sale of one or more series of tax-exempt and/or taxable, fixed-rate bonds issued under the Consolidated Service Contract Refunding Program in an amount not to exceed $525 million. Proceeds from the sale of the bonds are expected to be used to refund  various State-supported bonds issued by the Authority (approximately $206 million), potentially could refund the State’s Senior College portion of CUNY Bonds and various other State-supported bonds issued by certain other State authorities. A second negotiated refunding in an amount not to exceed $253 million  could potentially refund all or a portion of CUNY Bonds not refunded under the Consolidated Service Contract Refunding Program. The maturity of the bonds will not exceed that of the bonds to be refunded. Bond Counsel is Nixon Peabody, LLP. Lead Manager and Underwriter’s Counsel are yet to be determined.

The Board approved the following resolution to proceed for a new financing:

Vassar College (Poughkeepsie). The Board approved the negotiated sale of one or more series of tax-exempt, fixed and/or variable-rate bonds for a term not to exceed 40 years and in an amount of approximately $50 million of new money. Proceeds from the sale of the bonds are expected to be used to fund various construction and renovation projects on College’s campus.

The Board will hold its next meeting March 31 in Albany.

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Founded in 1944, DASNY is one of the largest higher education, health care and public-purpose issuers of public debt in the nation with an outstanding bond portfolio of more than $41.7 billion. The Authority also is a major public builder in New York State with a construction pipeline of 725 projects valued at $6.7 billion.