Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 54]

EXTRACTED TEXT FROM PAGE:

1984]

UNIVERSITY OF ILLINOIS

43

In the interim, University staff, working in concert with the financial advisor, bond counsel, underwriters, and underwriters' counsel, have: 1. Prepared an Official Statement for the Series 1984 Bonds and a Bond Resolution; 2. Met with bond-rating agencies to acquire their ratings for such bonds; 3. Subscribed with the Federal government to purchase state and local government securities; 4. Finalized arrangements with the Department of Education for the prepayment of the H U D debt from funds which have not been derived from a tax-exempt borrowing; and 5. Started to market the Series 1984 Bonds, subject to board approval. Should the board approve the series of actions that follow, closing of the refinancing program will occur on September 27, 1984. At that time: 1. H U D Series A through L presently owned by the United States Department of Education will be prepaid. 2. An escrow account will be established that will provide for all future payments on (i.e., defease) all other current debt (Series M, Series N, and the 1978 Refunded Bonds). 3. A Debt Service Reserve will be established in an amount not less than one year's maximum net debt service. 4. Provision will be made to deposit funds in an Invested Sinking Fund Account in amounts required to provide for essentially level debt service over the duration of the Series 1984 Bonds or level debt service adjusted to accommodate the issuance of Improvement Bonds. 5. Other reserve accounts will be established: namely, a Repair and Replacement Reserve Account similar to the one currently in force, but with an increase in the maximum amount of funds that can be accumulated in the account; an Equipment Reserve Account; and a Non-Instructional Facilities (Development) Reserve Account. T h e sources and uses of funds related to the refinancing program are as follows: Sources (subject to change) Bond Principal Release of DSRF (Unrestricted) Transfer of D S R F (Restricted) Release of Series A-N Funds Release of 1978 ISF Investments Transfer of 1978 Acquired Obligations System Equity Cash Balance from 1978 Escrow Total Sources Uses System Improvements Prepayment of D O E Held Bonds Series 1984 Acquired Obligations (SLGS) Purchase of U.S. Treasury Receipts Transfer of 1978 Acquired Obligations (SLGS) 1984 Debt Service Reserve Fund Bond Discount Issuance Costs Cash Deposit to Escrow Total Uses $ 55 4 1 3 13 20 2 1 $103 $ 1 9 45 13 20 6 2 875 462 590 559 247 853 300 535 423 270 919 800 150 259 200 000 000 598 000 500 500 817 200 000 510 571 500 598

200 648 838 920 853 000 011 352 3 598 $103 423