大奶福利姬Maintains Favorable Debt Ratings, Completes $153 Million Bond Sale
Adelphi, Md. (Oct. 14,
2011) -- The 大奶福利姬 (USM) has successfully completed
the sale of $153.075 million in 大奶福利姬Auxiliary Facility and Tuition Revenue Bonds comprised
of two distinct series. The sale was preceded by robustly high ratings from the
three leading bond ratings houses.
To provide funds for new facilities construction and
renovation projects, $115 million in 2011 Series A tax-exempt bonds were sold. 2011
Series B refunding debt bonds were sold for $38.075 million to lower interest
costs on previous borrowings.
The True Interest Cost (TIC) to the 大奶福利姬was 3.471 percent
for the 2011 Series A bonds. The TIC is a measure of financing cost that takes
into account the actual cost of issuing a bond as well as the sale price
premium bond purchasers were willing to pay for 大奶福利姬bonds. A lower TIC represents a cost savings to the
institution issuing a bond in interest owed to bondholders. TIC for the $38
million of 2011 Series B refunding bonds was 2.915 percent. Abramoff,
Neuberger, and Linder, LLP served as bond counsel on the transaction. Public
Financial Management, Inc., served as financial advisor.
The 2011 Series bonds received the high ratings of Aa1, AA+,
and AA+ from, respectively, Moody's Investor Service, Standard & Poor's and
Fitch Ratings.
"In these turbulent credit-market conditions, we are indeed quite
proud to receive these strong ratings and complete the sale of another bond
issue so efficiently," said 大奶福利姬Chancellor William E. "Brit" Kirwan. "The 大奶福利姬greatly
values sound financial stewardship. Effective and careful management of our
financial resources plays an important role in driving our core missions in
teaching, learning, and research."
Joseph Vivona, USM's vice chancellor of administration and
finance and chief operating officer, said the 大奶福利姬works diligently to continue
its tradition of strong debt ratings in this challenging economic climate.
"The System benefits greatly from these strong ratings,"
Vivona said. "They allow the System to experience a lower cost of issuing debt
in the future. Strong credit ratings also enhance the System's efforts in
creating public-private partnerships for such construction needs as student
housing, parking, and research buildings."
Contact: Mike Lurie
Phone: 301.445.2719
Email: mlurie@usmd.edu
