George Mason Gets Funding in Virginia Schools Offer: Muni Deals
Tomorrow’s competitive offer from the Virginia College Building Authority is among $3.7 billion of long-term municipal issues scheduled for this week, the slowest non-holiday period since December, data compiled by Bloomberg show.
“This is the commonwealth stepping up and helping the higher-education institutions in the state,” Evelyn Whitley, director of debt management, said by telephone from Richmond. The funding “doesn’t come off the tuition and fees.”
Virginia’s 21st Century College and Equipment Programs, established by lawmakers in 1996, provides funds for capital projects and research at universities and colleges, said Whitley and deal documents.
The revenue bonds, which have a final maturity of 2034, are backed by appropriations from the legislature. Debt from the program is ranked Aa1 by Moody’s Investors Service and AA+ by Standard & Poor’s and Fitch, second-highest, according to the commonwealth’s Treasury Department.
Proceeds will pay for work such as erecting an engineering facility at Virginia Polytechnic Institute and State University and renovating a building at the College of William and Mary, Whitley said.
Fairfax-based George Mason, which in 2006 tied a record for the lowest-seeded team to make the National Collegiate Athletic Association basketball tournament’s Final Four, is among 23 facilities receiving about $62 million for research equipment.
Securities from Virginia issuers are losing 4.8 percent this year through Sept. 12, in line with the rest of the $3.7 trillion municipal market, Standard & Poor’s data show. The state’s debt trailed the market from 2009 through 2012.
Governments are borrowing with benchmark yields near the highest level since April 2011 after individuals pulled about $26 billion from muni-focused mutual funds in the 16 weeks through Sept. 11, Lipper US Fund Flows data show.
Pending deals this week include bonds from the state of Washington and Dallas-Fort Worth International Airport.
To contact the reporter on this story: Romy Varghese in Philadelphia at email@example.com
To contact the editor responsible for this story: Stephen Merelman at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.