Summary: University of Dubuque, Iowa Iowa Higher Education Loan Authority; Note; Private Coll/Univ - General Obligation

S&P Global Ratings assigned its 'BBB' long-term rating to the Iowa Higher Education Loan Authority's approximately $12.845 million series 2021 revenue and refunding bonds, issued for the University of Dubuque (UD). In addition, S&P Global Ratings affirmed its 'BBB' long-term rating on Iowa Higher Education Loan Authority's series 2011 private college facility revenue refunding bonds, issued on behalf of UD and its 'SP-1' short-term rating on the university's series 2021 revenue anticipation notes (RANs). The outlook, where applicable, is stable. The series 2021 tax-exempt, fixed rates bonds ($12.845 million par) will be used to refund the university's series 2011 bonds for interest rate savings and finance various capital and deferred maintenance projects (approximately $9.1 million) on its campus located in

...issued as a general obligation of the university, we understand that in conjunction with this financing, the university will enter into a security and parity agreement, to also grant the series 2016 bondholder the gross revenue pledge; with the series 2016 and 2021 bonds on parity with one another. In addition to maintaining the debt service coverage ratio, the university's series 2016 bonds include a liquidity covenant, with maintenance of unrestricted cash and investments to indebtedness of at least 0.5x to 1.0x each May 31 and Nov. 30, and a requirement to maintain an investment grade rating. We understand that the series 2016 private placement debt includes provisions for cross-default and principal acceleration in the event of a default. According to documents provided to S&P Global Ratings with an event of a default, there is a 30-day cure period, after which the bonds would become immediately due. According to management, as of Feb. 28, 2021, UD had about $150.4 million in unrestricted...

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