Featured Municipal Bond Issue, Week of March 12, 2018: University of Connecticut – Special Obligation Student Fee Revenue Bonds – $152 Million
The University of Connecticut is issuing $152 million in special obligation student fee revenue bonds the week of March 12, 2018. The bonds are being issued as a single series, 2018 Series A. Interest on the bonds is excluded from gross income for federal income tax purposes.
Bond proceeds will be used to finance the cost of UConn 2000 Infrastructure Improvement Program projects. Details on the specific capital projects can be found in the official statement, and in even greater detail in the latest UConn 2000 Legislative Report No. 45. Security for the bonds is a special obligation of pledged revenues, which include various fees and charges for certain auxiliary activities. The pledged revenues are subject to a prior lien for a certain loan from the United States through the Secretary of the Department of Education, as well as certain general obligation bonds of the State of Connecticut, categorized by the state as self-liquidating. Fees and charges include but are not limited to:
- Residential Life Room Fee
- Student Apartment Rentals
- Greek Housing Fees
- Board (Dining) Fee
- Infrastructure Maintenance Fee
- Parking and Transportation Fee
- General University Fee
- Athletic Stadia FIT Fee
- Student Recreation Center Fee
According to the preliminary official statement, debt service coverage in 2017 was 7.81, and has since 2011 never dropped below 5.45. Debt service coverage is estimated to be 7.75 in 2018, and increase each year to 8.52 through 2022.
Details on the purposes, tax-status, security, as well as other matters pertaining to these University of Connecticut bonds can be found in the preliminary official statement, available on MuniOS.
These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.
by Jeffrey L Garceau