The Texas State University System is issuing $315 million in Education Bonds to refinance its outstanding debt and finance certain capital projects. The negotiated sale is scheduled for October 24th, with Morgan Stanley as the lead underwriter.

About the Bonds

Series 2019 A constitutes $168.5 million of the total issuance. Proceeds from this series will be used to finance capital projects related to campus infrastructure including new construction, renovation of existing structures, as well as the acquisition and purchase of new properties. This series will also be used to refund a portion of the Board of Regents outstanding commercial paper notes.

Series 2019 B accounts for the remaining $150 million of the total issuance. Proceeds from this series will be used only to refund a portion of the University System’s outstanding obligations for debt service savings.

In the opinion of counsel, interest on the Series 2019 A is excludable from gross income for federal income tax purposes, assuming compliance with certain covenants described in the Official Statement. Conversely, Series 2019 B is not excludable from gross income for federal tax income purposes.

The bonds are secured by a special obligation of the Board of Regents payable from pledged revenues related University System income streams including tuition and fees. Moody’s has granted these bonds a rating of Aa2, and Fitch has granted a AA rating.

University System Information

The Texas State University System is the oldest in the Lone Star State, having been founded by the State Legislature in 1911. San Marcos is its flagship University with over 38,000 students and 2,000 faculty. Located along the I-35 corridor between the major cities of Austin and San Antonio, it draws students from one of the most high growth economic sectors of the country. As demand for an educated workforce rises in Central Texas, so will demand for college degrees. The System’s other institutions are no less dynamic, and offer regionally specialized curriculum along with strong cores of traditional University education.

Below is a financial snapshot of Texas State University, San Marcos.

Provided above is a quick snapshot of financial characteristics of the Texas State University System 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.