Fitch Rts Univ of Chicago IL $250MM Bds `AA+'; $75MM S-T Rtd `F1+'.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 24, 2001 The $75,000,000 Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. Educational Facilities Authority (IEFA IEFA International Education Financial Aid IEFA Indiana Elementary Football Association ) revenue bonds, The University of Chicago, series 2001A, $50,000,000 IEFA adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. revenue bonds, The University of Chicago, series 2001B-1, $50,000,000 IEFA adjustable rate revenue bonds, The University of Chicago, series 2001B-2, and $75,000,000 IEFA adjustable rate revenue bonds, The University of Chicago, series 2001B-3 are rated `AA+' by Fitch fitch: see polecat. . The short-term rating for the series 2001B-3 bonds is `F1+'. In addition Fitch affirms the `AA+' rating on the outstanding $125,000,000 IEFA revenue bonds, The University of Chicago, series 1998A and $90,510,000 adjustable rate revenue bonds, series 1998B. Fitch also affirms the `F1+' rating on the outstanding $100,000,000 IEFA commercial paper revenue notes (the Notes), The University of Chicago, Financing Program. The series 2001A and 2001B bonds are expected to be sold the week of Sept. 24 through negotiation by Bear, Stearns & Co. Inc. The series 2001A bonds are expected to be issued as tax-exempt, fixed-rate revenue bonds, with a bullet maturity in fiscal 2042. The series 2001B bonds are expected to be issued as adjustable rate bonds with a bullet maturity in fiscal 2037. The series 2001B-1 and 2001B-2 bonds are expected to have an initial adjustable rate period of greater than 365 days while the series 2001B-3 bonds are expected to have an initial rate period of less than 365 days. Bear, Stearns & Co. Inc. will serve as the remarketing agent for the series 2001B bonds. Proceeds will be used to refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies $100 million of outstanding commercial paper notes and $150 million will fund various capital projects and to pay costs of issuance. The long term `AA+' rating reflects The University of Chicago's (UC or the university) strong balance sheet, positive operating performance, outstanding reputation as one of the world's leading research universities and impressive student demand among its graduate and professional programs. UC's strong balance sheet is reflected by the total amount of investments and cash, which had an aggregate market value of approximately $4.2 billion as of June 30, 2000. Of this total, Fitch considers nearly $3.3 billion as unrestricted available funds. After consideration for issuance of the additional debt associated with the bonds, the level of June 30, 2000 available funds will cover total pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma debt by 4.9 times (x). Operating performance, as measured by the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , has been positive and shown only slight variability over the past five years. The margin has ranged from a low of 1.5% to a high of 3.3% and was 2.7% in fiscal 2000. Audited financial statements are not available for fiscal 2001, however, preliminary numbers reflect a margin of slightly less than 1.5%. UC maintains its status as one of the top research universities, attracting significant research funding Research funding is a term generally covering any funding for scientific research, in the areas of both "hard" science and technology and social science. The term often connotes funding obtained through a competitive process, in which potential research projects are evaluated and and top faculty. Building upon this foundation, UC has developed an impressive reputation as a leader in graduate and professional education. Overall, UC's graduate and professional programs exhibit superior demand characteristics, resulting in stable enrollment levels for its programs. A five year average acceptance rate of 24% and matriculation ma·tric·u·late tr. & intr.v. ma·tric·u·lat·ed, ma·tric·u·lat·ing, ma·tric·u·lates To admit or be admitted into a group, especially a college or university. n. rate of 39% are positive indicators of the student demand for these programs. The short term 'F1+' rating for the series 2001B-3 bonds reflects UC's strong and sufficiently liquid balances. As of June 30, 2001, UC had more than $650 million in cash and fixed income securities. While the level of cash and fixed income investments may vary during the year, the level will be maintained with at least $75 million to meet the par amount of the series 2001B-3 bonds. Fitch reviewed the internal funding procedures and policies outlined by management and believes that they would provide for timely flow of funds Flow of funds In the context of municipal bonds, refers to the statement displaying the priorities by which municipal revenue will be applied to the debt. In the context of mutual funds, refers to the movement of money into or out of a mutual funds or between or among in the unlikely event of an unremarketed put of the series 2001B-3 bonds. Bear, Stearns & Co. Inc. is the remarketing agent for the series 2001B-3 bonds. Areas of concern are the university's large ten year capital plan which calls for approximately $1.3 billion of projects, $360 million of which is expected to be paid for with new debt. This financing is part of the total debt to be issued with the remaining $210 million to be issued over the next two years. An additional concern is the tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. discount rate of nearly 40% which is high. The rate can be explained by UC's desire to attract the brightest students and its large number of graduate students. This concern is partially mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by UC's demonstrated ability to raise significant levels of funds annually for student financial assistance. |
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