USF Financing Corporation and USF Property Corporation

Transcription

1 USF Financing Crpratin and USF Prperty Crpratin ANNUAL REPORT TO THE BOARD Annual Meeting Nvember 3, 2015 Presented by: Fell L. Stubbs, Executive Directr

2 Annual Reprt t the Bards f Directrs LONG-TERM FINANCING OBJECTIVES Prvide lw-cst, lw-risk, lng-term financing fr the University s majr capital prjects Maintain strng credit ratings: USF, Husing, Marshall Center, and Parking systems Negtiate sund credit structures supprting each bnd series Seek lw-cst capital by accessing public and private markets Capitalize n pprtunities t cnvert variable t fixed rates, reduce credit risks, reduce swaps, and refund at call dates t lck-in lw interest rates Public / Private Transactins PUBLIC BONDS PRIVATE PLACEMENTS TOTAL Number f Clsed Transactins $ f Clsed Transactins $1.1 B $0.3 B $1.4 B Current Outstanding Debt $166 M $188 M $354 M [ 2 ]

3 Annual Reprt t the Bards f Directrs HIGHLIGHTS OF THE PAST YEAR Clsed Transactins May 6, 2015 $132 millin Series 2015A COPs, Series 2015 Revenue Bnds and Series 2012A COPs Tw refundings fr savings (Series 2005A and Series 2005C), ne cnversin t fixed rate (Series 2012A); fixed rates: 1.87%, 3.39% and 3.62%, respectively. Cnstructin Prjects Maintained strng credit ratings: Affirmed USF (Aa2), Maintained Husing System (A1), Increased Marshall Center (Aa3) Eliminated liquidity risks: Reduced variable rate debt utstanding t 35% frm 59% Reduced interest rate swaps: Outstanding swaps reduced frm $202 M t $126 M Released Andrs frm Husing Grund Lease t accmmdate USF P3 Prject Reduced cst f capital by refunding/cnverting at lwer current market rates $8.8 Millin = Cmbined PV Savings N prjects currently in prgress Bnd System Management Ratings during FY 2015, Mdy s and S&P affirmed their ratings fr the University at Aa2 Stable and AA- Stable, respectively, affirmed their ratings fr the USF Husing System at A1 and A+, respectively, and assigned ratings fr the USF Marshall Center at Aa3 and AA- Managed debt service cash flws and bnd cvenant cmpliance fr Husing, Health and Athletic Bnd Systems. Independent Auditrs bth Crpratins received unqualified pinins, with n findings. Managed $358 millin f lng-term bnds fr USF Financing Crpratin 13 Series. Managed $126 millin f interest rate swaps hedging 3 Series f variable-rate COPs with 2 cunterparties. [ 3 ]

4 Annual Reprt t the Bards f Directrs NEAR-TERM INITIATIVES P3 USF Student Husing Develpment Prject $133 M ($40 M Equity, $93 M Debt) Opprtunity: Develp multi-use residential village Objectives: Transfer risks fr capital asset maintenance, cnstructin, peratins and demand Accelerate delivery f husing prject Preserve USF credit ratings and debt capacity USFFC Invlvement: Released Andrs Grund fr P3 Cntinued management f USF Husing debt Capitalize n Opprtunity t Cnvert Series 2013A Certificates Opprtunity: Cnvert $40 millin f variable rate debt t fixed rate (Series 2013A) Terminate assciated interest rate swap Objectives: Reduce risk assciated with variable rate bnds Lck in current lw, lng-term market rates [ 4 ]

5 Annual Reprt t the Bards f Directrs 10-YEAR CORPORATE TRACK RECORD USF Financing/Prperty Crpratin University s Special Purpse Financing Arm The Crpratins play a large and strategic rle fr the University by prviding an ecnmical, efficient and unified plan f financing that cnsiders the University s missin, gals and strategic plan. The USF Bard f Trustees apprved frmatin f the tw Crpratins in December 2004; peratins cmmenced in March $1.4 billin in Financing Transactins Clsed $520 millin f Prjects Develped 1.9 millin sq ft f Prjects Develped $382 millin in ttal Crprate Assets $354 millin f Crprate Debt utstanding as f September 30, % Lng-Term Cst f Capital (includes Arena taxable nte) T-E Bnd Buyer revenue bnd index 30-year 4.07% (Octber 16, 2015) USF Financing Systems Husing A1-rated $195 millin system supprted by student fees. Includes Tampa husing, St. Petersburg husing and parking garage, and St. Petersburg multi-purpse student center Marshall Student Center Aa3-rated $36 millin revenue bnd Series supprted by student fees. Health unrated $77 millin system supprted by USF medical facilities revenue. Includes tw state-f-the-art medical clinics, a medical ffice building and the new Center fr Advanced Medical Learning & Simulatin (CAMLS) Athletics / Arena unrated $47 millin system supprted by Athletics facilities revenue and Arena revenue. Includes basketball, baseball and sftball facilities, sccer and ftball practice fields, and renvated Arena [ 5 ]

6 Annual Reprt t the Bards f Directrs GOVERNANCE STRUCTURE USF Financing/Prperty Crpratin (USFFC/USFPC) Directrs and Officers Bard f Directrs Name Term 4-Year Term Ending Steven A. Williamsn First 2017 Sandra W. Callahan First 2018 Richard D. Smith First 2018 Lri V. Vaughan First 2019 Judy Genshaft, USF President NA Jhn W. Lng, USF Chief Operating Officer NA Crprate Officers Name Psitin 2-Year Term Ending Sandra W. Callahan Chair (USFFC) 2016 Sec/Treas (USFPC) 2016 Richard D. Smith Chair (USFPC) 2016 Sec/Treas (USFFC) 2016 Fell L. Stubbs Executive Directr NA [ 6 ]

7 Annual Reprt t the Bards f Directrs GOVERNANCE STRUCTURE Bard f Directrs Cmpsitin and Term Limits At least 5, but n mre than 7, members; appinted as fllws: One Directr appinted by USF Bard f Trustees One Directr shall be the USF President r designee One Directr shall be USF CFO r designee Tw Directrs, ne frm the Bards f Directrs f each f tw f the University s Reginal Campuses shall be appinted by the then members f the Bards f Directrs Up t tw additinal directrs may be elected at the annual meeting f the Bard f Directrs by the then current members f the Bard f Directrs Terms f Office: Fur years in length Maximum f tw cnsecutive terms Directrs may be re-appinted r re-elected t the Bard f Directrs after the expiratin f ne-year fllwing the end f his r her last previus term and will have the status f a new member USF President r Designee and USF CFO have n term limit Officers fr each Crpratin are the Chair, Executive Directr, Secretary and Treasurer; appinted as fllws: Executive Directr is appinted by the USF President All ther Officers are elected at the Annual Meeting Terms f Office fr Crpratin Officers: Tw years in length Executive Directr has n term limit [ 7 ]