Fitch Affirms University Of North Texas Cp Program At 'f1+'

[UNTflyer]

NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms its 'F1+' on the Board of Regents of the University of North Texas System (System) commercial paper (CP) program which is supported by the System's internal liquidity. The System's Board of Trustees plans to increase the size of the CP program from $50 million to $100 million on July 7, 2008. As of Aug. 30, 2007, approximately $20.01 million of CP is outstanding. The System uses its CP program capacity to finance eligible capital projects on an interim basis.

The short-term 'F1+' rating is primarily supported by the System's significant level of unrestricted and liquid reserves. The most liquid of the System's investments are invested in the state's money market fund, TexPool, which had an investment balance of nearly $19.4 billion as of June 10, 2008. The amount invested by the System in TexPool as of March 31 was $176.4 million. In the event of a failed rollover of CP, the System's TexPool investments would cover maximum liquidity demands by approximately 1.8 times (x). To mitigate potential calls on its TexPool investments, the System has established an internal policy that requires its balance in TexPool to be maintained at a minimum level of 1.2x the amount of CP outstanding.

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Interesting that they plan to increase the school's line of credit by $50 million... about the amount we would bond out on the stadium.

[DallasGreen]

Very good news and a student fee could be used to retire the bonds. Turn dirt now while quest for magnificent donor in the sky continues.

Edited June 12, 2008 by DallasGreen

[houstonmeangreen]

This is indeed very interesting and exciting news.....maybe we are on the way. I wonder the the radisson hotel deal fits in? It has to fit in somehow for UNT to buy the contract lease out and the fact they had to do it NOW and vote over the phone....could not wait until the board meeting. Maybe we hear something in July. July 7th is exactly 5 months from the design award to HKS for the stadium.

very interesting.

[UNTflyer]

I agree. If UNT has $30 million of credit available, why increase it another $50 million unless you plan to build something BIG!