Case Study

University of Illinois

PFM was hired by the University of Illinois ("UIL") in 2004 and in 2006 PFM advised UIL on the issuance of approximately $318 million fixed rate Auxiliary Facilities System Revenue Bonds, which the largest financing in the institutions history. The proceeds of the 2006 financing were used to advance refund and current refund outstanding UIL bonds, and to finance several projects including the renovation of the UIL's football stadium on its Urbana-Champaign campus and the construction of various housing, dining, and renovation projects. PFM AM was retained by UIL to serve on investment advisor on the procurement of a Repurchase Agreement for its project fund which totaled approximately $252 million.

PFM assisted UIL through several components of the financing: provided education regarding the economics and risks associated with several potential structures including variable rate and synthetic structures, generated several financing scenarios and presentations for the UIL management team and Board, procured credit enhancement bids and negotiated conditions with the winning bidder, assisted the UIL through the ratings process and helped obtain an improved rating outlook from Moody's Investors Service (improved from stable to positive).

Currently PFM is working with the University in structuring a Certificates of Participation transaction to restructure existing debt of the University to create debt service relief and fund new capital projects.

PFM is retained by UIL to assist it on a monthly basis in various capacities including the filing of its annual disclosure and cash flow modeling.