Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 580]

EXTRACTED TEXT FROM PAGE:

1978]

UNIVERSITY OF ILLINOIS

567

assist the University and the advisers in the preparation of the official statement and other appropriate documents in connection with the issuance, offering, and sale of the Advance Re-funding Bonds. T h e bank will also advise the University concerning financial matters relating to the issuance, offering, and sale of the Advance Re-funding Bonds. It is further recommended that the Board of Trustees approve the appointment of the First National Bank of Chicago to serve as trustee of the Advance Refunding Bonds and for any subsequent parity bonds issued in conjunction with the University's Housing and Auxiliary Enterprise System. T h e vice president for administration has requested approval of the above recommendations and has requested authority for the appropriate officers to execute agreements to accomplish the planned underwriting program as described. Any resolutions required in connection with the advance re-funding bond issue will be presented to the board for consideration at the appropriate time. I approve of the recommendations and recommend approval of them.

The student advisory vote was: Aye, Miss Conlon, Mr. Overstreet, Miss Winter; no, none. On motion of Mr. Livingston, these recommendations were approved and authority was given as recommended by the following vote: Aye, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Lenz, Mr. Livingston, Mr. Neal, Mrs. Rader, Mrs. Shepherd, Mr. Velasquez; no, none; absent, Governor Thompson.

Contract with A. G. Becker Municipal Securities, Incorporated

(21) T h e University has received a proposal from A. G. Becker Municipal Securities, Incorporated, to serve as financial adviser to the University for the advance re-funding bond sale for the issuance and exchange of bonds to create a housing and auxiliary facilities system at the University of Illinois. A. G. Becker will provide the following financial advisory services for $198,930, 1 with payment to be made upon successful completion of the sale and subsequent delivery of bonds: 1. Make such investigations as considered necessary and appropriate to prepare the most advantageous presentation for sale of the bonds as permitted by law. 2. Confer, consult, and work with the University, agents, attorneys, and other advisers on all matters relating to the bonds, including the substance of various reports, bond provisions, bond resolution relative to sale of the bonds. 3. Assist in the preparation, together with all parties involved, of the official statement and any other reports deemed necessary for the sale of the bonds. 4. Structure the refunding transaction to take maximum advantage of the United States Treasury regulations governing advance refundings. 5. Advise the University on the investment of its reserves upon creation of the system. 6. Assist the University in its presentation to the bond rating services and present information relative to the bonds in order that the best possible credit ratings may be established. 7. Advise the University in developing a bond purchase contract. 8. Advise the University regarding printing, execution, and delivery of bonds. Fee schedule: Bonds Outstanding , . . . . Prior to Creation Principal Amount Financial Advisory o/ the System (Thousands) Fee per $1,000 Bonds United States Department of Housing and Urban Development S 22 374 S 2 00 (or 2/10 percent) Public $54 322 $ 2 50 (or V percent) i Foundation $ 7 351 $ 2 50 (or V percent) i Total Financial Advisory Fee

1

Amount ^ , „ $ 44 748 S 135 805 j 18 377 ? 198 930