Texas Tech University System Issues $374 Million in Bonds
The TTU System’s premium bond refinancing saved the system $4.96 million.
February 1, 2017 | Contact Scott Lacefield
The Texas Tech University System yesterday (Jan. 31) issued $374.735 million in bonds while continuing to take advantage of low interest rates and improving the financial position of the system.
The bond issuance was approved by the TTU System Board of Regents Pricing Committee on Tuesday.
“The interest for Texas Tech University System bonds was exceptionally strong,” Vice Chancellor and Chief Financial Officer Gary Barnes said. “The TTU System received $1.4 billion worth of purchase requests. I’m pleased to say we were able to maintain our current bond rating with plans to add more than $250 million of new bonds to our existing portfolio.”
The TTU System recently received a Aa1 rating from Moody’s Investors Service; AA+ from Standard & Poors and AA+ from Fitch.
“The issuance of the latest bond series allows us to more efficiently manage our debt and bring savings to the Texas Tech University System,” Chancellor Robert L. Duncan said. “A conservative fiscal approach continues to be awarded top ratings, yielding significant interest from investors and lower interest rates.”
The bond sale fully funded all of the Tuition Revenue Bond (TRB) projects approved by the Legislature. The financial support received from the Legislature had a significant impact on the TTU System ratings and interest received in the bond market.
The TTU System will use proceeds from the bond issuance to support the following projects: Experimental Science Building II (TTU); System Administration Office Building (TTU System); Honors Residence Hall (TTU); Permian Basin Academic Facility (Texas Tech University Health Sciences Center); Lubbock Campus Expansion (TTUHSC), Medical Science Building II (TTUHSC El Paso); College of Human & Health Sciences (Angelo State University); Sports Performance Center (TTU), Amarillo Simulation Center (TTUHSC); Refund TPFA/Government Capital Corp Leases (ASU) and Central Heating and Cooling Plant upgrades (TTU).
Additionally, the refinancing saved the TTU System $4.96 million.
About the Texas Tech University System
Established in 1996, the Texas Tech University System is one of the top public university systems in the state of Texas and nation, consisting of four universities—Texas Tech University, Texas Tech University Health Sciences Center, Angelo State University and Texas Tech University Health Sciences Center El Paso.
Headquartered in Lubbock, Texas, the Texas Tech University System is a $2 billion enterprise focused on advancing higher education, health care, research and outreach with approximately 20,000 employees, more than 50,000 students, nearly 325,000 alumni and an endowment over $1.1 billion.
In its short history, the Texas Tech University System has grown tremendously and is nationally acclaimed, operating on more than a dozen campuses statewide and internationally. Under the dynamic leadership of Chancellor Robert L. Duncan, the Texas Tech University System has set forth a bold vision of excellence, collaboration and innovation and continues to prove that from here, it’s possible.