for
the Amherst campus of the University of Massachusetts
Dec.
1, 2000
|
$200m bond issue to fund capital projects by Sarah R. Buchholz, Chronicle staff  he
University system via the University of Massachusetts Building Authority
is offering approximately $200 million of bonds next week for a variety
of capital improvement projects, according to Thomas Green, director
of public finance for Salomon Smith Barney, the firm through which
the building authority is offering the bonds. Approximately $138 million of the total will go to finance projects on the Amherst campus that have been approved by the Board of Trustees as part of the five-year capital plan, according to Stephen W. Lenhardt, vice president for Management and Fiscal Affairs and treasurer. The monies generated by the bond sale will pay for some of the costs of renovating Franklin Dining Commons and Goessmann Lab and building the $10.8 million nursing school, the $63 million heating plant, the $75 million Integrative Science Building, a $9.3 million swing space building, and the $13.6 million Isenberg School of Management addition, as well as other renovation projects on campus, Lenhardt said. Other major projects the bond will help fund are the building of two residence halls on the Dartmouth campus to accommodate 1,500 new residential students and a renovation of the business school. The Boston campus will also see some benefits from the bond in the form of code compliance projects. "Our next step will be to borrow another $73 million next spring for the two new student centers at Boston and Lowell," Lenhardt said. "The University is moving aggressively to borrow the funds to shape the place up. The physical condition and the attractiveness of our campuses is highly dependent on this aggressive strategy. We're also hoping that the state will continue to invest anywhere between $20 million to $30 million in the next few years in this capital plan." Lenhardt said the bond issue is part of a four-pronged approach to funding capital improvements on the campuses. In addition to borrowing money and direct support from the Legislature, the University is seeking private support and the campuses are using part of their direct operating revenues for capital improvements, he said. The long-term, fixed-rate bonds are federal- and state-tax exempt for Massachusetts residents and will be available for retail purchase Dec. 4 and 5, according to Michael Ramella, branch manager at Salomon Smith Barney in Springfield. "A portion of the offering will carry a AAA rating from a bond insurer and a portion will carry a AA- rating," Green said. The bonds range in maturity from one to 30 years. "The fact that the University is a good name in the market, we expect a significant demand for the bonds that will be reflected in attractive rates for the University," Green said. "It's a good deal for the University and for investors," Ramella said. Further information and a copy of the prospectus are available from Ramella by calling 734-7311. |
