Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 53]

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42

BOARD OF TRUSTEES

[September 20

3. Work with the University to create a financing program that will provide the University with the maximum credit rating and flexibility to meet its future needs. Clayton Brown will recommend a financing plan which includes: (i) gross amount of bonds, (ii) description of projected fees and issuance expenses, and (iii) a schedule of projected annual debt-service payments; 4. Work with bond counsel and University staff in developing financing documents, and recommend to the University terms, conditions, and covenants that will be acceptable to prospective purchasers; 5. Prepare an Official Statement incorporating all relevant facts about the University, its students and faculty, its financing, and its position in the higher education community; 6. Mail or assist in mailing the Preliminary Official Statement to underwriters and investors who bid on municipal issues and institutional investors who have an interest in revenue bond issues; 7. Advertise for bids and contact selected underwriters to solicit their respective participation; 8. Assist in completing closing requirements, including responsibility for all matters related to the printing and delivery of the bonds and the receipt of payment; and 9. Advise the University as appropriate on an ongoing basis after the financing has been consummated. This contract is considered exempt from competitive bidding procedures as service requiring professional skills. I recommend approval.

O n motion of Mr. Stone, this recommendation was approved by the following vote: Aye, Mrs. Day, Dr. Donoghue, Mr. Forsyth, M r . H a h n , Mr. Howard, Mr. Logan, Mr. Madden, Mrs. Shepherd, M r . Stone; no, none; absent, Governor Thompson. (The student advisory vote was: Aye, M r . L a m m , M r . Pittman; no, none.) Debt Refinancing 1984 Auxiliary Facilities System

(3) At a special meeting of the Finance and Audit Committee of the board held on September 6, 1984, a presentation was made outlining a program to refinance all of the current debt of the Auxiliary Facilities System. The objectives of the program included: 1. Achieving a savings of approximately $1.2 million by prepaying all of the current H U D debt (Series A - L ) ; 2. Providing a similar amount of funds to plan potential projects to maintain and/or enhance the Auxiliary Facilities System; 3. Achieving annual savings on current debt service through the year 2009 without extending the current debt beyond that year; and 4. Achieving additional annual savings, vis-i-vis funding new projects through traditional 25- to 30-year revenue bonds, by modifying the pattern of future debt-service payments. The committee endorsed these objectives and authorized the comptroller and vice president for business and finance to proceed with the next steps required to implement the program, all subject to board approval at its meetings on September 20, 1984.