June 8, 2005 – Susan Hammons

Financing secured for residence hall, parking garage

NACOGDOCHES — Stephen F. Austin State University Board of Regents adopted a resolution authorizing the sale of $17.22 million in bonds for a residence hall and parking garage in a telephone meeting today.

Earlier in the day, the Texas Public Finance Authority, acting on behalf of the university, awarded the bond sale to Merrill Lynch, the lowest of eight bidders with an interest rate of 4.1236 percent, said Kim Edwards, executive director of the Texas Public Finance Authority.

Sale proceeds will finance construction of the 320-bed residence hall on the site of the former Units and a 572-space parking garage east of the University Police Department. Proceeds also pay the cost of issuing the bonds. The residence hall is scheduled to be finished by January 2006.

“I think you should feel good about this,” Dr. Roland Smith, SFA vice president for business affairs, told regents about the bond issue. “We can pay for it, and it’s a good interest rate.”

Merrill Lynch underwrites the bonds and then sells them to investors in $5,000 increments, Smith said.

Rating company Fitch assigned the bond issue an A+, while Moody’s rated it A2. First Southwest Co. is the financial adviser to the university for the sale.