Financing and Debt Management
The Office of Finance & Treasury is responsible for managing the capital structure of the University and providing cost effective solutions for the financing of capital projects on either a short-term or long-term basis. This may include the issuance of taxable and tax-exempt bonds, commercial paper, bank credit facilities, and working capital lines of credit. The Office is also responsible for the management of investment banking relationships and the relationship with credit rating agencies.
The University borrows periodically in the long-term, tax-exempt credit market by issuing bonds through the California Educational Facilities Authority (CEFA). It may also secure various lines of credit for short-term borrowing needs. Please refer to the footnotes in the The University of San Francisco's audited financial statements for further details. All borrowings must be approved by the University’s Board of Trustees. The University has established a debt policy that governs the University’s financing transactions as well as its use of derivative products. The University maintains a credit rating with Moody’s Investors Service (Moody’s), which will be updated on a periodic basis. The most recent written confirmation of the University’s credit rating was issued in January 2011 in conjunction with the University’s Series 2011 Revenue Bonds that were issued through CEFA in February 2011.
Moody’s Credit Rating Report January 2011
On February 16, 2011, the University issued its Series 2011 Revenue Bonds in the amount of $79,770,000 through CEFA. The bonds consist of serial and term bonds that mature through 2036, with yields that range from 1.87% to 6.25%. The proceeds of the bonds were used to redeem the Series 2005A and 2006 auction rate securities and finance capital projects at the University. Subsequent to this bond issue, the University’s debt structure consists of approximately 50% fixed rate bonds and 50% variable rate bonds that are hedged through interest rate swap agreements. Please contact Stacy Lewis, Associate Vice President for Finance & Treasury, for additional information.