Healthcare & Higher Ed Top DASNY Agenda

Board Adopts New Financing Guidelines; Board Appoints New CFO

New York City - - At its monthly meeting here today, the Board of the Dormitory Authority of the State of New York (DASNY) approved more than $1.7 billion in bond financings that will benefit educational, healthcare and mental health institutions and other state programs across the New York State.

In a major policy development, the Board adopted new financing guidelines that expand the Authority’s ability to provide access to the capital markets for a wider range of not-for-profit institutions rated in the BBB category which were previously required to be treated as exceptions to the financing guidelines. Among other provisions, the new guidelines also enable the Authority to undertake private placement financings.

Dormitory Authority Executive Director Paul T. Williams, Jr., said: “These new financing guidelines will enable the Authority to more efficiently and effectively execute its core mission of creating access to the capital markets for a wide range of worthy institutions across New York State. With the access to capital, these institutions will be able to grow, create jobs and offer an expanded range of services and opportunities to New Yorkers.”

The Board also appointed Paul W. Kutey as the Authority’s new Chief Financial Officer and Treasurer. Mr. Kutey’s appointment takes effect immediately.

The Board gave final approval to the following new financings:

Friends Academy (Locust Valley, Nassau County). The Board approved the sale through a private placement of fixed-rate or variable-rate, tax-exempt bonds for a term not to exceed 20 years and in an amount not to exceed $6.5 million. Proceeds from the sale of the bonds are expected to be used to make extensive renovations to the Lower School. Bank is Brown Brothers Harriman & Co.; Bond Counsel is Nixon Peabody LLP; Bank Counsel is Goulston & Stoors PC.

Fordham Preparatory School. The Board approved the sale through a private placement of fixed-rate or variable-rate, tax-exempt bonds through a private placement for a term not to exceed 20 years and in an amount not to exceed $7.2 million. Proceeds from the sale of the bonds are expected to be used to construct a new fourth floor to the existing three-story academic building, and make other renovations. Bank is Brown Brothers Harriman & Co.; Bond Counsel is Nixon Peabody LLP; Bank Counsel is Goulston & Stoors PLC.

Marymount Manhattan College. The Board approved the negotiated sale of fixed-rate, tax-exempt 20-year bonds in an amount not to exceed $55 million. Proceeds from the sale of the bonds are expected to be used to refund the Dormitory Authority’s Marymount Manhattan College Insured Revenue Bonds, Series 1999. Underwriter is Merrill Lunch & Co.; Bond Counsel is Hiscock & Barclay LLP; Underwriter’s Counsel is Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC.

Northern Westchester Hospital. The Board approved the negotiated sale of one series of tax-exempt, variable-rate, 25-year bonds in an amount not to exceed $18 million. Proceeds from the sale of the bonds are expected to be used to renovate and expand the hospital’s Emergency Department. Lead Manager is TD Securities; Co-Bond Counsels are Squire Sanders and Knox Seaton; Underwriters Counsel is Phillips Lytle LLP.

The Board approved the following resolutions for single-approval financings:

Personal Income Tax Revenue Program. The Board approved the negotiated sale of one or more series of Tax-exempt and/or taxable, fixed-rate and/or variable-rate Personal Income Tax Revenue Bonds for a term not to exceed 30 years and in an amount not to exceed $1 billion. Proceeds from the sale of the bonds are expected to be used to refund the Dormitory Authority’s Mental Health Services Facilities Improvement Revenue Bonds, Series 2003C and 2003D; fund the swap termination for the Mental Health refunding; fund various projects for the Environmental Facilities Corporation; and reimburse the state’s general fund for healthcare grants issued under the HEAL Program. Lead Manager, Bond Counsel, and Underwriter’s Counsel are yet to be determined.

Mental Health Service Facilities Improvement Revenue Bonds. The Board approved the negotiated sale of one or more series of tax-exempt and/or taxable, fixed-rate and/or variable interest-rate bonds in an amount not to exceed $330 million, the term of which will not exceed the term of the bonds being refunded. Proceeds from the sale of the bonds are expected to be used to refund certain Mental Health bonds issued between 1996 and 2003. Bond Counsel is Hawkins Delafield & Wood LLP. Lead Manager and Underwriter’s Counsel are to be determined.

Hamilton College. The Board approved the negotiated sale of fixed-rate, tax-exempt bonds in an amount not to exceed $17 million and for a term not to exceed the final maturity of the bonds to be refunded. Proceeds from the sale of the bonds are expected to be used to refund the Dormitory Authority’s Hamilton College Insured Revenue Bonds, Series 1999. Lead Manager is Barclays Capital; Bond Counsel is Sidley Austin LLP; Underwriter’s Counsel is Edwards Angell Palmer & Dodge LLP.

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

Cornell University. The Board approved the negotiated sale of one or more series of tax-exempt and/or taxable, fixed-rate and/or variable-rate 30-year bonds in an amount not to exceed $285 million. Proceeds from the sale of the bonds are expected to be used to construct a new biomedical research building, construct a new Animal Health Diagnostic Center, construct an addition to the Heat and Power Plant, construct an addition to the Johnson Art Museum, construct a new Physical Sciences Building.

The Board will meet next on January 27 in New York City.

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The Dormitory Authority, founded in 1944, is the largest higher education, health care and public-purpose issuer of public debt in the nation with an outstanding bond portfolio of more than $38 billion. The Dormitory Authority also is a major public builder in New York State with a construction pipeline of 719 projects valued at $6.9 billion.