Debt Management Navigating Through Uncharted Volatility

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Debt ManagementNavigating Through Uncharted
Volatility

• Bill Doering
• Treasurer, University of Cincinnati
• Pam McCreary
• Director Debt Management, University of Cincinnati

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UNIVERSITY OF CINCINNATI

• Ohio Public University 1819
• 1 of 2 Carnegie High Level Research Universities
  in OH
• 14 Colleges and 2 Schools 2 Branch Campuses
• Over 37,000 Total Enrollment
• Approximately 1 Billion Operating Budget
• 833 Million Endowment (as of June 30, 2009)
• 191 Million Operating Cash (as of June 30, 2009)
• Over 1 Billion in Outstanding Debt
• Ratings Moodys A2 SP A (as of September,
  2009)

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2.5
3.5
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Source Ohio Board of Regents, 03/24/2009
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Institutional Liquidity
LOW
HIGH

• Capitalized Interest
• LOC Provided on VRDN
• Internal Overdrafts

• BANS
• Bridge Financing
• Frequency in Market to Sell Bonds

• Commercial Paper
• Self-Liquidity on VRDN
• Dedicated Internal-Funded Borrowing

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Proposed Debt ServiceRestructuring - 2008 2009
Maturities

• Annual Debt Service Before and After
  Restructuring (Net of Assumed Interest Earnings)
• General Receipt Bonds, Certificates of
  Participation and Capital Leases

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Note See Present Value Analysis of Before and
After Debt Service Payments
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How Did UC Get Things Accomplished So Quickly?

• Refunding Board approved resolutions
• Update annually to be poised to act
• Access to Sr. VP of Finance and board members
• Set up weekly conference calls with investment,
  debt, finance
• Tap into internal experts, if available
• Discuss/Review with Chief Investment Office for
  Endowments
• Education
• Crash course on swaps

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How Did UC Get Things Accomplished So Quickly?

• Tap into colleagues
• Decision to do Swap
• Needed Swap Advisor FAST
• Ready access to underwriter, bond counsel and
  issuers council
• Multi-year contracts
• Long term relationships
• Flexibility of finance team
• Weekly conference calls
• Regular in-person meetings
• In the market frequently
• Quarterly, on average

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Questions??

• Contact Us
• bill.doering_at_uc.edu
• 513-556-4513
• pam.mccreary_at_uc.edu
• 513-556-3149