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TEXAS A&M COMMERCIAL PAPER NOTES RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 TEXAS A&M COMMERCIAL PAPER NOTES RATED 'F-1+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 19 /PRNewswire/ -- The Board of Regents of the Texas A&M University System's Revenue Financing System Commercial Paper Notes, Series B, are rated 'F-1+' by Fitch. The system is expected to issue approximately $40 million of notes in early September.
 The Texas A&M system has recently amended its short-term borrowing program to fund the interim capital financing needs of the system. The Board of Regents has authorized the issuance of up to $125 million of tax-exempt commercial paper (TECP) to be issued as parity obligations with the system's other revenue-supported debt.
 The TECP notes, and all other parity debt of the system, are secured by system pledged revenues, including a limited general student fee, a limited tuition fee, and a pledge of all legally available funds of the system. As of August 31, 1992, total system pledged revenues under the system master resolution total $373 million.
 The A&M system will act as its own liquidity provider for any amounts issued up to a limit of $50 million under the new TECP program. The system has covenanted in the Note Resolution authorizing the program to maintain a line of credit for any amounts issued above $50 million. The liquidity facility will be sufficient to pay the principal of all TECP outstanding in excess of $50 million plus accrued interest for 90 days at 15 percent per annum.
 The system has adopted a formal debt policy declaring that it will maintain available fund cash balances at a minimum of 1.5 times the amount of TECP supported by the system's liquidity. The average monthly balance of available funds in the system cash investment pool since January 1991 was $277.6 million, providing a very strong 5.5x coverage of the total authorized system-supported TECP limit of $50 million. The system debt policy also outlines procedures that the system treasury department will follow to ensure the timely transfer of funds to pay off maturing TECP in the event of a remarketing failure.
 The system agrees to provide Fitch with periodic reports in order to monitor the system's liquidity, including notification within two days if the system's available fund cash balances fall below $200 million in market value on any one day.
 In addition to its size and diversity, the Texas A&M system exhibits strong demand, substantial financial strength and modest debt levels. Total 1992 spring undergraduate enrollment is 68,021.
 -0- 8/19/92
 /CONTACT: Andy Matteis of Fitch, 212-908-0501/ CO: Texas A&M University System ST: Texas IN: SU: RTG


LR -- NY059 -- 1441 08/19/92 15:41 EDT
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Publication:PR Newswire
Date:Aug 19, 1992
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