Unt To Expand Credit Line By $50m

UNTflyer · June 12, 2008

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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Reposting with a new title.

eulessismore · June 12, 2008

Never mind my original question as to what F1+ means. Here's the link:

Fitch ratings definitions

Edited June 12, 2008 by eulessismore

DeepGreen · June 12, 2008

F1 means FOOTBALL is #1. Not sure what the + means.

Mean Green Matt · June 12, 2008

I think it means A+.

UNTflyer · June 12, 2008

Could anyone explain what the "F1+" rating means to those of us who aren't savvy on such matters?

F1+ : best quality grade, indicating exceptionally strong capacity of obligor to meet its financial commitment

mean green d · June 12, 2008

Is anybody the least bit giddy what this could mean? GMG

NTPhiKap99 · June 12, 2008

F1 means FOOTBALL is #1. Not sure what the + means.

F1 Highest credit quality. Indicates the strongest capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

gangrene · June 12, 2008

Well, I certainly hope this is good news but it certainly isn't the first time the BOR has taken out a loan:

Fitch Rates Univ of North Texas System Rev Bonds 'AA-'

Business Wire, Sept 28, 2005

The System consists of a university located in Denton, Texas, the UNT Health Science Center at Fort Worth and the South Dallas campus, all in the Dallas-Fort Worth metroplex. The metroplex is located in a growing region of the state and projects a doubling of the 5 million population by 2030.

Outstanding Debt (8/31/05):

-- $1,040,000(a) Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 1997;

--$24,620,000(a) Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 1999;

--$13,020,000(a) Board of Regents of the University of North Texas System Revenue Financing System Refunding and Improvement Bonds, series 1999A;

-- $32,735,000 Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 2001;

-- $55,985,000 Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 2002;

-- $9,010,000 Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 2002A;

-- $30,610,000 Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 2003;

-- $6,185,000 Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 2003A;

-- $4,950,000 Board of Regents of the University of North Texas System Revenue Financing System Bonds, series 2003B (Taxable);

-- $23,400,000 Board of Regents of the University of North Texas System Revenue Financing System Commercial Paper Program.

Prior lien obligations:

-- $5,910,000(a) Board of Regents of the University of North Texas Consolidated University Revenue Bonds, series 1994;

--$515,000 Board of Regents of the University of North Texas Health Science Center General Tuition Revenue Bonds, series 1994;

-- $9,005,000(a) Board of Regents of the University of North Texas Consolidated University Revenue Bonds, series 1996.

(a) Portion of outstanding debt to be refunded with series 2005 bonds.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

3XNTGRAD · June 12, 2008

Not to put a damper on the speculation - but could this have anything to do with the new Business Building that is planned?

Mean'n'Green07 · June 12, 2008

Not to put a damper on the speculation - but could this have anything to do with the new Business Building that is planned?

Does anyone have any pictures or designs of the new business building? I've heard this is going to be pretty state of the art...

FirefightnRick · June 12, 2008

Not to put a damper on the speculation - but could this have anything to do with the new Business Building that is planned?

Possibly, but my source tells me that the Multi-purpose facility issue precedes any of COBA's needs.

Anyone know what the amount of the current campaign drive is? Wasn't the last one $156 Million?

Rick

Edited June 12, 2008 by FirefightnRick

Mean Green Matt · June 12, 2008

Not to put a damper on the speculation - but could this have anything to do with the new Business Building that is planned?

North Texas already has the funding for the business building. It is going to be a "green" building, built where Kendall and Highland Halls are now. When I got this information back in February, I was told those building would come down late this summer...Regardless, this new loan should have nothing to do with the business building from what I have been told.

Green Mean · June 12, 2008

Ok so forgive me as I am just not able to put my thinking gears on at this time of night, but can anyone explain to me what all this F1+ stuff means in Lehmans terms?

NT80 · June 12, 2008

Sounds promising, but let's not count our stadiums before they hatch. Been disappointed too many times in the past. Someone alert Vito we need an inside scoop as to what's going on behind the scenes.

Edited June 12, 2008 by NT80

filmerj · June 12, 2008

Sounds promising, but let's not count our stadiums before they hatch. Been disappointed too many times in the past. Someone alert Vito we need an inside scoop as to what's going on behind the scenes.

He'll just refer us back to his blog about the notebooks being sent out.

MeanGreenEagle · June 12, 2008

F1 Highest credit quality. Indicates the strongest capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

Ok so forgive me as I am just not able to put my thinking gears on at this time of night, but can anyone explain to me what all this F1+ stuff means in Lehmans terms?

We have a great credit score. I wonder if the school used that free credit report site with the catchy jingle.

...F-R-E-E that spell free

credit report dot com baby.

NTPhiKap99 · June 12, 2008

Ok so forgive me as I am just not able to put my thinking gears on at this time of night, but can anyone explain to me what all this F1+ stuff means in Lehmans terms?

It simply means we have the best credit you can get.

UNTFan23 · June 12, 2008

If the university has $20 million of outstanding debt on the books, to increase it to 5 times that could be used to pay for a lot more then just the COB and CAS new buildings, based on the amount secured for those buildings already, if they were to max out the line of credit. The university is at 40% now of the current $50 million maximum, so why increase the line (that much)?

$30 million should be more then enough to help finish funding the new COB building since not all the financing has been secured yet. According the to the NT Daily archives, $50 million of the $60 million for the building has come from the state legislature. I know the school has also been interested in selling the naming rights to the COB to help raise some additional funds.

I do know that there are also plans to build a new Life Sciences Complex where Masters Hall was. It appears that most all of the financing of the $33 million dollar building has been secured as well, based on what I found in the NT Daily archives.

There has to be some other big construction project looming to warrant such an increase.

UNTflyer · June 12, 2008

There has to be some other big construction project looming to warrant such an increase.

Yes, that's why I sat there and stared at the article before posting it over here, trying to think of any announced project that might justify doubling UNT's current line of credit. While there are certainly other possibilities, the stadium seems to be a very likely reason. Someone mentioned in the other thread that July 7 is 5 months to the day after HKS was hired to draw up the stadium plans. Probably coincidene, but who knows.

$50 million is probably what would need to be bonded out to build the stadium. We are extending our credit used for capital projects by $50 million. The atheltic village just got paid off. I am cautiously optimistic about this.

KRAM1 · June 12, 2008

HOPE SPRINGS ETERNAL! You gotta believe! GO MEAN GREEN..BUY SEASON TICKETS!

Green Mean · June 12, 2008

Maybe they dont have plans on using that money for athletics...instead to give extra funding for other projects like COBA, CAS, dorms etc. I also read a few years ago that they were thinking about replacing the student union with a newer and bigger building that would be in a different area. Not sure if its still trying to be done but thats what I read some time ago.