Fitch Affirms 'AAA' on Permanent Univ Fund Bonds Series 2005B.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms the 'AAA' rating to the $125,000,000 Board of Regents An independent governing body that oversees a state's public Colleges and Universities. All 50 states have governing bodies that oversee the administration of public education. of The University of Texas System (UT) Permanent University Fund bonds, series 2005B. The bonds sold in March 2005 and are scheduled to close July 7, 2005. The bond proceeds will be used to current refund $125,000,000 of outstanding flexible-rate notes, series A. The bonds were sold through negotiation via JP Morgan. The Rating Outlook is Stable. The bonds are secured by a first lien on UT's distributions from the PUF PUF Public Use File PUF Parallel URL fetcher (*nix download tool) PUF Physically Unclonable Function PUF Northern Puffer PUF Paid-Up-Front PUF Preguntas de Uso Frequente (Spanish: Frequently Asked Questions) to the Available University Fund. UT also has a $400 million flexible-rate note program, which is secured by a second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the of the PUF distributions. Currently, $125 million is outstanding under the program but will be refunded with the series 2005B bonds. The PUF's vast investment holdings, which had a market value of $8.7 billion on April 30, 2005, continue to be the key credit strength supporting the 'AAA' ratings of PUF bonds and notes. The Texas constitution requires that funds be distributed annually from the PUF to pay bond and note debt service. UT receives two-thirds of the PUF's distributions, which are made under policies of the UT Board of Regents pursuant to the current endowment distribution policy of 4.75%. UT's distribution covered PUF bond and note debt service by 3.4 times (x) in fiscal 2004. Under the constitution, UT PUF debt may not exceed 20% of the cost value of the PUF ($8.2 billion as of April 30, 2005) at the time of issuance. The board has a contract with the University of Texas Investment Management Company (UTIMCO UTIMCO University of Texas Investment Management Company ) to invest funds under its control and management. UTIMCO is a 501(c)(3) corporation and was created in 1996 for the specific purpose of managing U.T. System investment funds. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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