Municipal Bonds For The BCS Top 25


December 12, 2012

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Municipal bonds are issued to help fund a variety of civic activities and projects. Among these public projects that benefit from the issuance of municipal bonds are the facilities and activities of colleges and universities. Now that the college football regular season has come to a close, the final BCS rankings have been released, and with the bowl game schedule now set, below we highlight municipal bonds offered by each of the schools in the top 25 of the BCS standings:

1. University of Notre Dame

Located in South Bend, Indiana, the Notre Dame Fighting Irish have one of the most storied college football programs in history, including 11 National Championships (the exact number is disputed). The school will play Alabama for the 2013 BCS National Championship on January 7, 2013. The Irish are seeking their first title since 1988. There are a few municipal bonds issued to fund projects at the school, but these bonds are issued by St. Joseph County, Indiana--the county where Notre Dame is located.

  • Issue: Educational Facilities Refunding Revenue Bonds Series (University of Notre Dame du Lac Project)
  • Issuer: St. Joseph County, Indiana
  • Location: South Bend, Indiana
  • Enrollment: 11,733
  • CUSIP: 79061ABK2
  • Maturity: March 2036
  • Coupon: 5.00%

2. University of Alabama

Located in Tuscaloosa, Alabama, the home of the Crimson Tide has an enrollment of about 33,602 students--and one of the best football teams in the country. In fact they are the defending BCS National Champions and winners of two of the past three. The Crimson Tide will play Notre Dame for their second straight title on January 7, 2013 in the BCS National Championship Game. There are several municipal bond issues from the University of Alabama outstanding, including a 3.25% coupon issuance that matures in 2036.

  • Issue: General Revenue Service Bond
  • Issuer: University of Alabama
  • Location: Tuscaloosa, Alabama
  • Enrollment: 33,602
  • CUSIP: 914026NB1
  • Maturity: July 2036
  • Coupon: 3.25%

3. University of Florida

The Florida Gators are a SEC powerhouse that has quite a history in college football. The Gainesville, Florida-based school has won three National Championships with their last one coming in 2008. It is the school where both Tim Tebow and Gatorade got their starts. The Gators will play Louisville on January 2, 2013 in the Sugar Bowl. As a public Florida school, the university gets bond funding through a number of issuers that can include the State, County, and City, as well as the University of Florida Research Foundation.

  • Issue: Capital Improvements Revenue Bonds, Series 2003
  • Issuer: University of Florida Research Foundation, Inc.
  • Location: Gainesville, Florida
  • Enrollment: 49,589
  • CUSIP: 914263AT5
  • Maturity: September 2033
  • Coupon: 5.125%

4. University of Oregon

Probably one of the most recognizable football teams in the NCAA due to their unique rotation of uniforms by Nike, the University of Oregon Ducks have made themselves at home at the top of the BCS standings in recent years. Coach Chip Kelly's offensive powerhouse Ducks were runners up in the 2011 BCS National Championship game, losing to Auburn. The Ducks will play Kansas State in the Fiesta Bowl on January 3, 2013. Located in Eugene, Oregon, the University of Oregon has a few bonds issued through the State that funds the Oregon University System as a whole.

  • Issue: General Obligation Bonds (Oregon University System Projects)
  • Issuer: State of Oregon
  • Location: Eugene, Oregon
  • Enrollment: 24,447
  • CUSIP: 68608K3T3
  • Maturity: August 2041
  • Coupon: 4.750%

5. Kansas State University

The Manhattan, Kansas based Kansas State University had quite a successful year in college football; they were even ranked Number 1 for a couple of weeks during the season. Though the co-Big 12 Champions have historically been a losing team, in recent years under coach Bill Snyder the Wildcats have shown signs of brilliance. The Wildcats will play the Oregon Ducks in the Fiesta Bowl on January 3, 2013. The municipal bond highlighted below was issued by the Kansas Development Finance Authority for the purpose of expanding the Farrell Library at KSU.

  • Issue: Revenue Bonds Series K (Kansas Board of Regents - Kansas State University Farrell Library Expansion Project)
  • Issuer: Kansas Development Finance Authority
  • Location: Manhattan, Kansas
  • Enrollment: 24,378
  • CUSIP: 4854268G8
  • Maturity: October 2015
  • Coupon: 5.400%

6. Stanford University

"Harvard of the West." Stanford University is not only one of the most prestigious institutions in the country in regards to academics, but also an athletic juggernaut. Especially in recent years, the Cardinal football program has constantly been ranked among the top of college football; a strong testament for a school with such selective academic standards. Stanford beat UCLA to win the Pac-12 title, which means that the school will play in the "Grand Daddy of 'Em All," the Rose Bowl, against Wisconsin on January 1, 2013. The California Educational Facilities Authority issued a 5.00% coupon revenue municipal bond for the University that matures in October of 2032.

  • Issue: Revenue Bonds (Stanford University) Series U-2
  • Issuer: California Educational Facilities Authority
  • Location: Stanford, California
  • Enrollment: 15,319
  • CUSIP: 130178M86
  • Maturity: October 2032
  • Coupon: 5.00%

7. University of Georgia

The Georgia Bull Dogs are an SEC powerhouse from Athens, Georgia. This year they faced off with Alabama in the SEC Championship game for a chance to face Notre Dame in the BCS National Championship Game. However, the Bulldogs came up short and instead will face Nebraska in the Capital One Bowl on January 1, 2013. The University of Georgia was benefited from a municipal bond issued by the Athens City Housing Authority to fund student housing on campus.

  • Issue: University of Georgia Student Housing Unrefunded Revenue Bond
  • Issuer: Athens City Housing Authority
  • Location: Athens, Georgia
  • Enrollment: 33,367
  • CUSIP: 047103BJ4
  • Maturity: December 2027
  • Coupon: 5.00%

8. Louisiana State University

The LSU Tigers are one of the best college football teams in this century. The school has won three national championships, including one in 2003 and 2007. Not to mention, the Tigers lost to Alabama in the BCS National Championship last year. This year LSU will play Clemson in the Chick-Fil-A Bowl on December 31, 2013. There are a few municipal bonds issued for the Baton Rouge-based state university, including this revenue bond with a 3.875% coupon outlined below.

  • Issue: Revenue Bond Series 2003
  • Issuer: Board of Supervisors of Louisiana State Univeristy & Agriculture & Mechincal College
  • Location: Baton Rouge, Louisiana
  • Enrollment: 29,549
  • CUSIP: 546521AT2
  • Maturity: July 2013
  • Coupon: 3.875%

9. Texas A&M University

Texas A&M made the conference jump from the Big 12 to the SEC this year. While there were many skeptics expecting the Aggies to do poorly in the most competitive college football conference, the team beat the odds being one of the best stories of the year. The highlight of the Aggie's season was the upset of then-number 1 Alabama in Tuscaloosa. Behind Heisman winner Johnny Manziel (aka Johnny Football), the 10-2 Aggies will play Oklahoma in the Cotton Bowl on January 4, 2013. The Texas A&M University system issued the bond below with a 5.250% coupon that matures in July of 2018.

  • Issue: Permanent University Fund Refunding Bonds
  • Issuer: Board of Regents of the Texas A&M University System
  • Location: College Station, Texas
  • Enrollment: 53,337
  • CUSIP: 882117G32
  • Maturity: July 2018
  • Coupon: 5.250%

10. University of South Carolina

The Ole Ball Coach (Steve Spurrier) has made the University of South Carolina Gamecocks relevant in recent years, including back to back double digit win seasons. Located in Columbia, South Carolina, the Gamecocks have become constantly ranked among the best SEC schools, as well as schools across the nations. South Carolina will face Michigan in the Outback Bowl on January 1, 2013. This 5.00% coupon revenue bond below was issued by the University and matures in May of 2017.

  • Issue: Revenue Bond Series A
  • Issuer: University of South Carolina
  • Location: Columbia, South Carolina
  • Enrollment: 30,967
  • CUSIP: 914862TC1
  • Maturity: May 2017
  • Coupon: 5.00%

11. University of Oklahoma

Located in Norman, Oklahoma, the Sooners are among the most storied programs in college football history. It is hard to remember a time when Oklahoma was not ranked in the top 25, let alone the top 10. The school last won a national championship in 2000. Bob Stoop's Sooners will face Texas A&M in the Cotton Bowl on January 4, 2013. The school, its board of regents, and the state's university system have issued many municipal bonds, including the revenue bond below.

  • Issue: General Revenue Bonds, Tax Exempt Series 2011A
  • Issuer: Board of Regents of the University of Oklahoma
  • Location: Norman, Oklahoma
  • Enrollment: 30,303
  • CUSIP: 9147605U3
  • Maturity: July 2035
  • Coupon: 5.00%

12. Florida State University

The ACC Champions have fallen on hard times in recent years, but coach Jimbo Fisher has seemed to put the program back on track. Though there were some expecting a possible national championship season for the Seminoles, the school still performed well enough to have an 11-2 record. FSU will go against Northern Illinois in the Orange Bowl on January 1, 2013. The State's Education System issued the municipal bond below to help fund student housing at Florida State University.

  • Issue: Florida State University Housing Facility Revenue Bonds, Series 2005A
  • Issuer: State of Florida Education System
  • Location: Tallahassee, Florida
  • Enrollment: 41,710
  • CUSIP: 343142BF1
  • Maturity: May 2035
  • Coupon: 5.00%

13. Oregon State University

The Beavers have been overshadowed by their state rivals, the Oregon Ducks, but that does not mean the school hasn't shown promise in the past couple of seasons. After two under .500 seasons, the Corvallis-based Oregon State Beavers bounced back with a 9-3 season and an opportunity to play Texas in the Alamo Bowl on December 29, 2012. The bond highlighted below is actually the same bond displayed with the University of Oregon. This is because the State issues bonds that fund the entire university system in the state and not just specific universities.

  • Issue: General Obligation Bonds (Oregon University System Projects)
  • Issuer: State of Oregon
  • Location: Corvallis, Oregon
  • Enrollment: 24,447
  • CUSIP: 68608K3T3
  • Maturity: August 2041
  • Coupon: 4.750%

14. Clemson University

Located in Clemson, South Carolina, the Clemson Tigers have been a solid program throughout the years, even winning a national championship in 1981. The school will play LSU in the Chick-Fil-A Bowl on December 31, 2013. The 2.00% coupon revenue bond outlined here is for the purpose of funding athletic facilities at the college, and possibly directly impacts the school's football program.

  • Issue: Athletic Facilities Refunding Revenue Bonds
  • Issuer: Clemson University
  • Location: Clemson, South Carolina
  • Enrollment: 19,914
  • CUSIP: 185630TU4
  • Maturity: May 2022
  • Coupon: 2.00%

15. Northern Illinois University

There is no doubt that the Northern Illinois Huskies have been a surprise this season. The MAC champions came out of nowhere to sneak into the top 15 of the BCS standings and a birth into one the BCS bowls. The non-automatic qualifying school will face Florida State in the Orange Bowl on January 1, 2013. The trustees of Northern Illinois have issued many municipal bonds to help fund certain programs at the school, including the 7.947% revenue bond below.

  • Issue: Auxiliary Facilities System Revenue Bonds
  • Issuer: Board of Trustees of Northern Illinois University
  • Location: DeKalb, Illinois
  • Enrollment: 25,313
  • CUSIP: 665245WX0
  • Maturity: April 2035
  • Coupon: 7.947%

16. University of Nebraska

The Nebraska Cornhuskers were embarrassed by the Wisconsin Badgers in the Big 10 Championship game, failing to earn a spot in the Rose Bowl. Nonetheless, the traditionally successful Cornhuskers had a solid season to earn a spot in the Capital One Bowl against Georgia on January 1, 2013. The University of Nebraska system has issued multiple bonds to fund specifically the University of Nebraska-Lincoln, including this revenue bond with a 5.00% coupon that matures in July of 2042.

  • Issue: University of Nebraska-Lincoln Student Fees and Facilities Revenue Bonds
  • Issuer: Board of Regents of the University of Nebraska
  • Location: Lincoln, Nebraska
  • Enrollment: 24,593
  • CUSIP: 914641W35
  • Maturity: July 2042
  • Coupon: 5.00%

17. University of California-Los Angeles

The UCLA Bruins are known more for their storied basketball program, but that does not mean that the football program hasn't had its moments of success. After years of living in the shadow of rival USC (University of Southern California), UCLA beat the Trojans to win the Pac-12 South title. The Bruins lost to Stanford in the Pac-12 title game, however. Nonetheless, UCLA will face Baylor in the Holiday Bowl on December 27, 2012. The municipal bond highlighted here is issued by the Regents of the University of California system, in which UCLA is included.

  • Issue: Revenue Bonds (Multiple Purpose Projects)
  • Issuer: The Regents of the University of California
  • Location: Los Angeles, University
  • Enrollment: 39,593
  • CUSIP: 9141135E1
  • Maturity: September 2009
  • Coupon: 4.200%

18. University of Michigan

Located in Ann Arbor, Michigan, the Wolverines are historically in the upper echelon of college football programs. The school has the most all-time wins and the highest winning percentage in the history of college football, including 11 claimed national titles. This year the Wolverines ended up 8-4 and now have a date with South Carolina in the Outback Bowl on January 1, 2013. There are many municipal bonds issued by this school, including this Build America Bond that has a 5.155% coupon and matures in April of 2019.

  • Issue: Taxable General Revenue Bonds, Series D
  • Issuer: Board of Regents of the University of Michigan
  • Location: Ann Arbor, Michigan
  • Enrollment:42,716
  • CUSIP: 914455JU5
  • Maturity: April 2019
  • Coupon: 5.155%

19. Boise State University

The Boise State Broncos have been a fan-favorite underdog story in recent years. This year's 10-2 record, by no means a bad year, was their worst record over the past four seasons. Usually fighting in the conversation to be a national championship contender, this year could be seen as a "rebuilding" year after all-time QB wins leader Kellen Moore graduated last year. Regardless, the Broncos will face Washington in the Las Vegas Bowl on December 22, 2012. The following bond is a Build America Bond issued by the school with a 6.309% coupon that matures in April of 2040.

  • Issue: Taxable General Revenue Bonds, Build America Bonds
  • Issuer: Boise State University
  • Location: Boise, Idaho
  • Enrollment: 19,664
  • CUSIP: 097464VB4
  • Maturity: April 2040
  • Coupon: 6.309%

20. Northwestern University

Traditionally, Northwestern has been known more for their academics and women's lacrosse than for the success of other athletic teams. However, this year the Wildcats broke through to finish with a solid 9-3 season. The Evanston, Illinois-based "Cardiac Cats" are known to give their fans a lot of anxiety in closely contested games. Northwestern will face Mississippi State University in the Gator Bowl on January 1, 2013. The Illinois Educational Facilities Authority issued the municipal revenue bond below on behalf of Northwestern.

  • Issue: Revenue Bonds, Northwestern University
  • Issuer: Illinois Educational Facilities Authority
  • Location: Evanston, Illinois
  • Enrollment: 19,184
  • CUSIP: 4520018K9
  • Maturity: December 2038
  • Coupon: 5.00%

21. University of Louisville

The Louisville Cardinals won a close game against Rutgers to help earn a share of the Big East title, and it boosted their BCS ranking ensuring their spot in a BCS bowl game. The Cardinals will face Florida in the Sugar Bowl on January 2, 2013. The school issued the following revenue bond with a 4.00% coupon and a maturity date of May 2024.

  • Issue: Consolidated Educational Buildings Revenue Bonds, Series P
  • Issuer: University of Louisville
  • Location: Louisville, Kentucky
  • Enrollment: 22,249
  • CUSIP: 914391XU6
  • Maturity: May 2024
  • Coupon: 4.00%

22. Utah State University

The Utah State Aggies won the final WAC conference title this year after a solid 10-2 record and a undefeated 6-0 conference record. They will play in only the eight bowl in their history on December 15, 2012 against Toldeo in the Famous Idaho Potato Bowl. The school has many outstanding municipal bonds, including this revenue bond with a 2.250% coupon with a maturity date of December 2016.

  • Issue: Research Revenue Refunding Bonds
  • Issuer: Utah State University
  • Location: Logan, Utah
  • Enrollment: 28,994
  • CUSIP: 917563DT2
  • Maturity: December 2016
  • Coupon: 2.250%

23. University of Texas

The Texas Longhorns are one of the most known college football programs with arguably the most recognizable logo. This was a down year for Texas' normal standards, finishing with an 8-4 record. However, that does not take away the four national championships and two Heisman trophy winners that the school is home to. The Longhorns will play Oregon State in the Alamo Bowl on December 29, 2012. The Board of Regents of the University of Texas System has many bonds outstanding for multiple schools in the university system. This 4.750% coupon issuance with a maturity date in August of 2028 is just an example of one of these bonds.

  • Issue: Revenue Financing System Bonds Series F
  • Issuer: Board of Regents of the University of Texas System
  • Location: Austin, Texas
  • Enrollment: 51,145
  • CUSIP: 915137G49
  • Maturity: August 2028
  • Coupon: 4.750%

24. San Jose State University

The San Jose State Spartans had a solid season, finishing second in the WAC. The school will be playing in only the ninth bowl game in the schools history on December 27, 2012 against Bowling Green in the Military Bowl. The municipal bond highlighted below is a revenue bond issued by the California State University System for the benefit of the system as a whole, of which San Jose State is included.

  • Issue: Systemwide Revenue Bonds
  • Issuer: Trustees of the California State University
  • Location: San Jose, California
  • Enrollment: 30,448
  • CUSIP: 1307747A4
  • Maturity: November 2026
  • Coupon: 5.125%

25. Kent State University

The Kent State Golden Flashes came up short in their MAC title game against Northern Illinois, failing to earn a spot in BCS bowl game. However, the season was not a total loss; a top 25 finish for a MAC school is something to be seen as an accomplishment. The school will face Arkansas State in the GoDaddy.com Bowl on January 6, 2013. The school has issued many bonds, including this 5.00% coupon issuance with a maturity date of May 2014.

  • Issue: General Receipts Bonds
  • Issuer: Kent State University
  • Location: Kent, Ohio
  • Enrollment: 28,602
  • CUSIP: 490728VX7
  • Maturity: May 2014
  • Coupon: 5.00%

Disclosure: No positions at time of writing.

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