Featured Bond – Week of April 22, 2019: The University of Connecticut $240 Million in General Obligation Bonds
The University of Connecticut is scheduled to issue $240 Million in General Obligation Bonds. The Bonds are authorized pursuant of the University of Connecticut 2000 Act. The Act establishes that the University can borrow money in its own name on behalf of the State in order to fund a special capital improvement program known as the “UConn 2000 Infrastructure Program”.
The Bonds are negotiated and have a current pricing date of April 24. Moody’s rates the Bonds A1, and S&P assigns a rating of A+.
About the UConn 2000 Infrastructure Project & the Purpose of the Bonds
The UConn 2000 Infrastructure Program, or UConn 2000 for short, is established by the University of Connecticut 2000 Act to modernize, rehabilitate, and expand the University grounds. The Act, originally adopted in 1995, provides for a 23-year capital budget program that occurs in three phases. The estimated total cost is $4,619,300,000.
The 2019 Series A Bonds are the 32nd Series of GO Bonds being issued for the purpose of the Act – to rebuild, renew, and enhance the University. The infrastructure projects are taking place mainly on the Main Storrs Campus of the University. The Act, as of a 2002 Amendment, also authorizes projects to the University of Connecticut Health Center. The University has issued Series A Bonds annually since 1996 increasing their Construction Account Deposit. One can view past reports about the UConn 2000 Project here.
Security for the Bonds
The Bonds are general obligations of the University who has pledged its full faith and credit. The Bonds are additionally secured by the pledge of and a lien upon the State Debt Service Commitment. This pledge and payable amount is equal to the interest and principal due on the 2019 Bonds appropriated out the the State’s General Fund and is mandated and obligated to be paid by the State Treasurer to the trustee for the Bonds, US Bank National Association.
These details and more on purposes, security, risks and other matters pertaining to these University of Connecticut general obligation bonds can the found in the official statement, provided by MuniOS. After registering, if needed, visitors can link directly to the official statement by searching for the University of Connecticut.
Statistical Snapshot: University of Connecticut Selected Financial and Economic Indicators
Provided above is a quick snapshot of financial characteristics of the University of Connecticut along with the medians for other Public Universities of all sizes, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness).
In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages.
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.
Potential investors should rely only on the official documents and figures provided in the official statement (prospectus). Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies , they are not intended to replace official information presented in connection with the bond sale. Medians may differ from official sales documents due to methodology or survey base variances.