University of Oklahoma OKs $420 million of revenue bonds

The University of Oklahoma plans to sell about $420 million of revenue bonds late this year or early next year to finance various projects, including a revamp of its football stadium.

With the board of regents' approval of the debt last week, the university will issue a request for proposals for bond counsel and financial advisor, followed by an RFP for underwriters, according to the school's media relations office.

Proceeds will fund student housing, parking, and athletics projects, including renovations to the 102-year-old Gaylord Family-Oklahoma Memorial Stadium on its Norman campus. The project approved by the regents board in November consists of gate, concourse, and concession improvements, as well as the construction of suites, other premium seating, and a new press box.

In October, S&P Global Ratings upgraded its rating on the university's general revenue bonds issued for the Norman campus to AA-minus from A-plus, citing "the university's role as the flagship of the Oklahoma higher education system and its R-1 research status, and associated funding, supported by a strong enrollment trend, a stable and capable management team, recurring positive financial operations, and ample financial resources."

Fitch Ratings in November revised its outlook on the university's A-plus rating to positive from stable, saying the move reflects the view "that OU can sustain meaningful capacity for solid cash flow and leverage in our five-year, forward looking stress scenario, at levels consistent with a higher rating."