DASNY Board Acts on New Not-for-Profit Financing

Uses New Authorization Granted by Legislature and Governor in Fall 2009

Albany - - At its January 27th Board meeting, the Dormitory Authority of the State of New York (DASNY) approved the sale of $330 million in bond financings to benefit higher education and mental health institutions and help them provide needed services and opportunities to the people of New York State.

Of significant note, the Board gave initial approval to a proposed $45 million financing on behalf of the InterAgency Council, a group of not-for–profit entities operating in the greater New York City area that provide essential programs and services in community-based settings for mentally ill and developmentally disabled clients. These services are financed by public agencies including the Office of Mental Retardation and Developmental Disabilities, the State Education Department, the Office of Children and Family Services, and the New York City Administration of Children and Family Services.

Dormitory Authority Executive Director Paul T. Williams, Jr., said: “DASNY is proud to provide our public finance expertise to help ensure the continuity of critical services for thousands of vulnerable New Yorkers provided by the dedicated not-for-profit organizations that make up the InterAgency Council.”

DASNY received authorization to undertake financings on behalf of the InterAgency Council in enabling legislation signed by Governor David A. Paterson in September 2009.

Proceeds from the financing are intended to be used to refinance outstanding indebtedness incurred by eight InterAgency Council members for 36 capital projects.

In addition to acting on the proposed InterAgency Council financing:

The Board gave final approval to the following new financing:

Cornell University. The Board approved the negotiated sale of one or more series of fixed-rate and/or variable-rate, tax-exempt and/or taxable bonds for a term not to exceed 30 years and in an amount not to exceed $285 million. Proceeds from the sale of the bonds are expected to be used to fund various projects on campus including construction of a bio-medical building, construction of a new physical sciences building, construction of a new animal health diagnostic center, and the refinancing of commercial paper. Lead Managers are Merrill Lunch & Co. and Citigroup Global Markets Inc.; Bond Counsel is Orrick, Herrington & Sutcliffe LLP; Underwriter’s Counsel is Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C.

The Board will hold its next meeting February 24 in Albany.

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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 734 projects valued at $6.7 billion.