In addition to its primary borrowing vehicles, the University also has other outstanding long-term debt obligations, as listed below:
Currently, the University has approximately $430.7 million* outstanding through the California Infrastructure and Economic Development Bank (CIEDB), which financed the costs of a Neurosciences Building at the San Francisco campus (issued in 2010), a research facility for the Sanford Consortium for Regenerative Medicine at the San Diego campus (issued in 2010), and a Department of Psychiatry Youth and Family Center (2130 Third Street) at the San Francisco campus (issued in 2017). For the bonds related to the Neurosciences Building and 2130 Third Street, the University is required to make base rent payments through a capital lease that equal the debt service on those bonds. For bonds related to the Sanford Consortium project, the University is required to make any debt service shortfall on those bonds through a debt service payment agreement. In addition, the University has other third party, non-recourse debt for housing projects.
The University has approximately $1.3 billion* of outstanding third-party housing debt (i.e. debt issued by a party other than the University but for a project in which the University has an economic interest) under its Financing Trust Structure (FTS) credit. The FTS credit was created to reduce the financing cost of non-core projects, but with a smaller impact on the University’s debt capacity (debt issued under the FTS credit is not counted against the University’s debt capacity on a 1:1 basis). Currently the projects in the FTS are housing projects at the Irvine, Riverside and Davis campus. The bonds are secured solely by gross revenues of the projects financed.
*Bonds outstanding as of July 31, 2019
