UC, state make bond deal to help projects move forward

UC Santa Cruz and seven other UC campuses will receive funding to pay for voter-approved construction projects under a new $199.9 million bond deal between UC and state Treasurer Bill Lockyer.

UCSC will receive the largest sum--$65.4 million--for a new five-story biomedical sciences facility and a new digital arts facility.

UC bought the general obligation bonds in a "private placement" transaction, in which the bonds were offered only to UC. Typically, the state sells general obligation bonds to individual and institutional investors in a public offering. The transaction is the latest of several private placements with public entities Lockyer has completed to help keep funds flowing to infrastructure projects while the state has coped with ongoing fiscal difficulties.

The state will pay UC 3.2 percent interest on the bonds.

See the San Francisco Chronicle story on the agreement.