Research Update: Uplift Education, TX's Series 2025 Revenue And Refunding Bonds Assigned 'BBB-' Rating

S&P Global Ratings assigned its 'AAA' long-term enhanced program rating and 'BBB-' underlying rating to Arlington Higher Education Finance Corp. , Texas' $56.3 million series 2025 education revenue and refunding bonds, issued to benefit Uplift Education . At the same time, S&P Global Ratings affirmed its 'BBB-' long-term rating and underlying rating on the school's previously issued debt. The outlook is stable. Following the series 2025 issuance, Uplift will have about $490 million of pro forma debt, including a $10 million note payable, with lease-adjusted maximum annual debt service (MADS) of approximately $29.9 million. Uplift's series 2012 through 2025 debt issuances include a first lien on adjusted revenue (defined as all legally available revenue) and on a land-campuses-leasehold mortgage. Officials

...Pro forma lease-adjusted MADS burden (as % of total revenue) N.A. 9.0 N.A. 10.3 N.A. Pro forma unrestricted reserves ($000s) N.A. 59,967 N.A. 59,613 N.A. Pro forma days' cash on hand N.A. 73.8 N.A. 80.8 N.A. Pro forma long-term debt ($000s) N.A. 490,132 482,790 493,155 426,375 Pro forma unrestricted reserves to debt (%) N.A. 12.2 N.A. 12.1 N.A. Pro forma debt to capitalization (%) N.A. 103.21 103.31 101.50 99.52 Pro forma debt per student ($) N.A. 21,479.1 20,916.3 22,242.2 19,730.4 Operating lease expense--Annual amount paid in facilities/capital lease payments; excludes equipment/nonfacility lease payments and excludes payments related to principal and interest on bonds. Net revenue available for debt service = EBIDA + operating lease expense. Lease-adjusted MADS coverage = (net revenue available for debt service + operating lease expense) / (lease-adjusted MADS). Total expenses include pension and OPEB adjustments. Pension and OPEB adjustments = reconciling adjustments made to financial...

Research Update