ROSELAND, N.J./April 14, 2009 -- Connell Foley partner John D. Cromie and associate Joseph A. Villani, Jr. recently represented Seton Hall University in a tax exempt $74,100,000 bond issuance by the New Jersey Education Facilities Authority (the “NJEFA”). The bond issuance was divided into a fixed rate series and a variable rate series of tax-exempt bonds, both of which were issued to secure funds to be loaned by the NJEFA to Seton Hall University to finance the refunding of prior NJEFA loans. The proceeds were used for various construction projects and improvements at Seton Hall University’s South Orange New Jersey Campus.
Pursuant to the New Jersey Educational Facilities Authority Law, the NJEFA is empowered to make loans to public and private colleges and universities for the construction, improvement, acquisition, and refinancing of eligible projects. The NJEFA is also empowered to issue its bonds to provide loans to refinance existing credit facilities.
In light of turmoil in the variable rate auction securities market, Seton Hall University elected to refinance a portion of its existing NJEFA loans, using more traditional variable rate demand obligation and fixed rate demand obligation bonds. The variable rate bonds are secured by a direct pay letter of credit and the fixed rate bonds are secured by a trust indenture with the NJEFA. Cromie and Villani represented Seton Hall University in the negotiation and implementation of the bond issuance.
John D. Cromie is Chairman of Connell Foley’s Corporate and Business Law practice group, and a member of the firm’s Banking Law and Finance practice group.
For more information regarding Connell Foley’s Corporate and Bank Finance practices, please contact Mr. Cromie at (973) 535-0500 or jcromie@connellfoley.com.
