Dormitory Authority of the State of New York
SUNY Dormitory Facilities Revenue Bonds, Series 2017A
Fourth DASNY financing solely secured by the University System’s Dormitory Facilities Revenue Program
On April 18, 2017, SCS served the Dormitory Authority of the State of New York (“DASNY”) as Book-Running Senior Manager on its $345 million State University of New York (“SUNY”) Dormitory Facilities Revenue Bonds, Series 2017A transaction.
The credit is rated “Aa3” by Moody’s and “A+” by Fitch and is just the fourth DASNY financing that is solely secured by the University System’s Dormitory Facilities Revenue Program. SCS served as Book-Running or Joint-Senior Manager on all four transactions.
SCS was instrumental in the inaugural transaction, having been selected by DASNY in 2012 to create and develop this “standalone” credit that would fund SUNY’s dormitory capital program without drawing on the University’s broader general obligation pledge and/or be considered state supported debt.
Throughout the 2017A transaction process, SCS worked closely with DASNY and SUNY, building upon the Firm’s prior work with the Authority and the SUNY system, to coordinate the overall transaction execution strategy and reintroduce the credit to the market after not having come to market for over a year.
- SCS executed a detailed structuring strategy combine new money and advance refunding structures that required consolidating new money and refunding cash flows from 22 underlying campuses.
- Working with DASNY, SUNY, and Bond Counsel, SCS performed extensive tax analysis on bonds issued for a number of campuses throughout the SUNY system in order to confirm the advance refundability of all potential candidates.
- SCS was also charged with crafting a concise investor presentation highlighting key strengths of the credit’s revenue streams
The transaction met with very successful pricing results. SCS and the syndicate secured $518 million in retail orders during the Retail Order Period, leading to decreases in spreads of between 1 and 3 bps.
A positive market tone and the above retail order book led SCS to recommend an acceleration into the institutional order period, which also resulted in great success: $829 million in priority net designated orders. This success allowed SCS to reduce yields between 1 and 6 basis points during repricing (on top of the previous bumps).