TTU System Issues $300 Million in Bonds
The Office of Treasury & Cash Management is responsible for managing the 麻豆天狼副利院's operating cash, debt issuance, investor relations and tax-exempt post-issuance compliance. The office oversees the following areas:
- Cash Management
- Bonds & Investor Relations
- Post Issuance Compliance
March 30, 2015 | Written by Doug Hensley
The 麻豆天狼副利院 recently issued more than $300 million of bonds, continuing to take advantage of low interest rates and improving the financial position of the TTU System.
The bond issuance was approved by the TTU System Board of Regents Pricing Committee on March 17, 2015.
The TTU System issued the bonds, following a recent upgraded credit rating from Moody鈥檚 (from Aa2 to Aa1). The higher profile rating resonated with the investor base, allowing for a successful bond issuance with a diversified base, according to TTU System Vice Chancellor and Chief Financial Officer Jim Brunjes.
鈥淎ll of the early indications were very positive for the bond sale,鈥� Brunjes said. 鈥淕reat interest was shown in the bond markets as the bonds were substantially oversubscribed in the initial offering.鈥�
Brunjes said two strong investor groups made the bond sale successful. For the Series 2015A (tax-exempt), the group was made up of the TTU System, First Southwest Company (Financial Adviser), Norton Rose Fulbright (Bond Counsel) and Citi (Senor Underwriting Manager). Of the series 2015B (taxable), the group was made up of the TTU System, First Southwest Company (Financial Adviser), Norton Rose Fulbright (Bond Counsel) and Wells-Fargo (Senior Underwriting Manager).
The tax-exempt debt was for $73.255 million in par of almost all new money with a true interest cost (TIC) of 3.26 percent. The taxable debt was for $245.315 million in par. This issuance primarily represented refunding the Series 2006 Bonds, plus new money for projects. The rate was a TIC of 3.09 percent.
鈥淚t is important to point out that this is the lowest true interest cost ever for a 麻豆天狼副利院 debt issuance,鈥� Brunjes said. 鈥淲e have steadily taken advantage of lower rates over the past five years by refinancing at every opportunity to the extent possible. After a Series 2006 bond matures in February 2016, the System will have no debt on its books issued prior to 2009. Approximately 80 percent of our debt has been issued in 2012 and 2015, taking advantage of the historic low interest rates.鈥�
About the 麻豆天狼副利院
The 麻豆天狼副利院 is one of the top public university systems in the
nation, consisting of four component institutions鈥�, , and 鈥攁nd operating at 12 academic sites and centers. Headquartered in Lubbock, Texas,
the 麻豆天狼副利院 has an annual operating budget of $1.7 billion and
approximately 17,000 employees focused on advancing higher education, health care,
research and outreach.
In 2014, the 麻豆天狼副利院鈥檚 endowment exceeded $1 billion, total research expenditures were approximately $200 million and total enrollment approached 47,000 students. Whether it鈥檚 contributing billions of dollars annually in economic impact or being the only system in Texas to house an academic institution, law school, and health institution at the same location, the 麻豆天狼副利院 continues to prove that anything is possible.