Fitch: Scripps Research Institute Proceeds with Refunding Transaction; New Building on Hold
The original sale date was postponed as management worked on obtaining required permits for the new building. Due to current market conditions, management has decided to move forward on the refunding portion of the transaction (approximately $33.9 million) as well as a smaller new money piece (approximately $16 million) for campus refurbishments. The series 2016 bonds are expected to be sold the week of Aug. 19.
Management had plans to build a new research building on campus. These plans are on hold while management re-evaluates the Institute's space needs. If the building moves forward, a $90-100 million new money issue would likely be issued in the next several months.
Since Fitch's prior review, the organization's recently installed president, Dr. Steve Kay, has elected to leave the organization, but the remaining members of the executive team are now all in place. According to Scripps, the new Chief Operating Officer, Richard King, has taken on some operational responsibilities that had been handled by Dr. Kay. Scripps was in the process of building out the leadership team at the time of Fitch's May 2016 review.
Management reports that the organization's strategy remains unchanged, with a focus on increased philanthropy, royalty monetization and the growth in translational research.
These changes do not have an effect on the 'A+' rating assigned in May.
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