Public Finance AuthorityRevenue Bonds(Roseman University of Health Sciences Project)Series 2020
Investor Presentation Call w/ Roseman ManagementFriday, February 7, 2020 @ 1:00pm PT
Dial In: 1‐877‐301‐2573 – Code: 5134675782#
Disclaimer
This Investor Presentation is provided as of February 5, 2020 for a proposed offering of Roseman University of Health Sciences Bonds, Series 2020(the “2020 Bonds”). The 2020 Bonds will be issued through the Public Finance Authority. All market prices, financial data, and other informationprovided herein are not warranted as to completeness or accuracy and are subject to change without notice.
This investor presentation is provided for your information and convenience only. Any investment decisions regarding the 2020 Bonds should onlybe made after a careful review of the complete Preliminary Limited Offering Memorandum. By viewing this Investor Presentation, you agree not toduplicate, copy, download, screen capture, electronically store or record this Investor Presentation, nor to produce, publish or distribute this investorpresentation in any form whatsoever.
This Investor Presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financialinstrument, including the 2020 Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the 2020 Bonds will be madesolely by means of the Final Limited Offering Memorandum, which describes the actual terms of such 2020 Bonds. In no event shall Stifel orRoseman University of Health Sciences or their officers, employees or agents be liable for any use by any party of, for any decision made or actiontaken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such informationmay not be relied upon by you in evaluating the merits of participating in any transaction mentioned herein. Stifel makes no representations as tothe legal, tax, credit, or accounting treatment of any transactions mentioned herein, or any other effects such transactions may have on you andyour affiliates or any other parties to such transactions and their respective affiliates. You should consult with your own advisors as to such mattersand the consequences of the purchase and ownership of the 2020 Bonds. Nothing in these materials constitutes a commitment by Stifel or any oftheir affiliates to enter into any transaction. No assurance can be given that any transaction mentioned herein could in fact be executed. Pastperformance is not indicative of future returns, which will vary. Transactions involving the 2020 Bonds may not be suitable for all investors. The2020 Bonds shall be offered for purchase only to Qualified Institutional Buyers and Accredited Investors. You should consult with your own advisorsas to the suitability of the 2020 Bonds for your particular circumstances.
This Investor Presentation may contain forecasts, projections, and estimates that are based on current expectations but are not intended asrepresentations of fact or guarantees of results. If and when included in this Investor Presentation, the words “expects,” “forecasts,” “projects,”“intends,” “anticipates,” “estimates,” and analogous expressions are intended to identify forward looking statements as defined in the Securities Actof 1933, as amended and any such statements inherently are subject to a variety of risks and uncertainties, which could cause actual results ot differmaterially form those contemplated in such forward looking statements. These forward looking statements speak only as of the date of thisInvestor Presentation. Roseman University of Health Sciences disclaims any obligation or undertaking to release publically any updates or revisionsto any forward looking statement contained herein to reflect any change in Roseman University of Health Sciences’ expectation with regardthereto or any change in events, conditions, or circumstances on which any such statement is based.
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Finance Team Members
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Roseman University of Health Sciences
Dr. Renee Coffman, President
Ken Wilkins, Vice President for Business and Finance
Terrell Sparks, Vice President for Operations
Underwriter
Borrower’s Counsel
Bond Counsel
Underwriter’s Counsel
Harriet Welch, Partner
Thomas Bruder, Senior Associate
Lisa May, Director (Underwriter)
Chuck Procknow, Managing Director (Public Finance)
Chad Christoff, Vice President (Public Finance)
Fred Marienthal, Partner
Jennifer K. Barrett, Partner
Stephen E. Weyl, Partner
Matthew S. Touchard, Attorney
Overview of the 2020 Bonds
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Issuer Public Finance Authority (the “Authority”)
Obligor Roseman University of Health Sciences (“Roseman” or the “University”)
Tax Status Federally Tax‐Exempt
Bond Size Total Par $82,700,000*
Term 4/1/2050 (final maturity)*
Rating S&P: “BB” / Stable
Sales Restrictions $100k minimum denominations; Initial Investor Letter; Minimum denominations reduced to $5k at “BBB‐” or “Baa3”
Use of Proceeds 1. Acquisition of RiverPark Eleven building (UT) ‐ $42.00 Million2. Acquisition of Crex‐Rancho property (NV) ‐ $5.85 Million3. Acquisition of Sunset Vista Park I building (NV) ‐ $11.13 Million4. Acquisition of Sunset Vista Park II building (NV) ‐ $4.54 Million5. Acquisition of Stonerose Research Lab building (NV) ‐ $5.31 Million6. Financing the construction and renovation of the building and
property acquisitions ‐ $7.50 Million7. Funding of a debt service research fund ‐ $4.92 Million8. Funding the costs of issuance of the Bonds ‐ $1.45 Million
*Preliminary, subject to change
About the Organization(See PLOM Page A‐1 through A‐3, further detail in A‐4 through A‐38)
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Roseman is a private, not‐for‐profit, co‐educational institution of higher education specializing in health careeducation. The University is a 501(c)(3) non‐profit corporation under the Internal Revenue Code.
― Roseman is currently located on three campuses:
1. Henderson, Nevada, 17 miles southeast of Las Vegas2. South Jordan, Utah, 17 miles south of Salt Lake City3. Summerlin, Nevada, 18 miles from the Henderson campus
― The University was founded in 1999 in Henderson, Nevada, and opened the second campus in SouthJordan, Utah in 2006.
― The University is governed by a Board of Trustees (the “Board”) which oversees the execution of theUniversity’s mission. Board Members are elected at each annual meeting, with elected members servingstaggered four‐year terms. In 2019‐2020, the Board is comprised of 24 members.
― The University is an accredited member of the Northwest Commission on Colleges and Universities(NWCCU). Roseman’s individual programs are accredited by their respective accrediting bodies. Theprograms of Roseman University are licensed in the State of Nevada by the Nevada Commission onPostsecondary Education and in the State of Utah by the State of Utah Department of Commerce.
Roseman University of Health Sciences’ Mission Statement is:
“Roseman University educates healthcare professionals and advance healthcare education through its innovative educational model; it creates and disseminates new knowledge; it impacts the health, education, and wellness of the communities it serves, and it provides a collaborative and supportive environment that enables
its students, faculty, and staff to be successful.”
Dr. Renee E. Coffman, President•Co‐founder of the Nevada College of Pharmacy, now Roseman University of Health Sciences
•Doctoral degree in Industrial and Physical Pharmacy from Purdue University
• Pharmacy degree from Ohio Northern University•Recepient of both the “Who’s Who in Healthcare” and “Women of Distinction” Awards sponsored by Greenspun Media Group
•Named “Women to Watch” in 2016 by Nevada Business Magazine
Dr. Harry Rosenberg, Founding President Emeritus•Co‐founder of the Nevada College of Pharmacy, now Roseman University of Health Sciences
• Founding Dean of the College of Pharmacy at Western University of Health Sciences (CA)
•B.S. in Biology from the University of Toronto•B.S. in Pharmacy, M.S, Ph.D. in Biochemistry and Natural Products, and Doctor of Pharmacy degree from the University of Michigan in Ann Arbor
Terrell Sparks, Vice President for Operations• Former Vice President of RiverPark management & Development
•35 years of experience in real estate development and management for commercial and residential investment real estate
•BA in Business Administration from Utah State University, MBA from Brigham Young University
•Certified Property Manager from the Institute of Real Estate Management
Ken Landen Wilkins, Vice President for Business and Finance/Treasurer• Joined fall of 2012 as Controller•Award recipient from the Las Vegas Chapter of Financial Executives International
• Former CFO at Fountain Valley School of Colorado•B.S. in History from Appalachian State University, M.S. in Accounting from Appalachian State University
Roseman University Leadership Team(See PLOM Page A‐32 through A‐36)
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Board of Trustees(See PLOM Page A‐30)
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Board of Trustees (2019‐20)
Name of Board MemberInitialElection
TermEnds Principal Affiliation
Jason Glick, Chair of the Board 1999 2021 Director of Pharmacy Services, St. Rose Dominican HospitalsHarvey Riceberg, Vice Chair of the Board 1999 2022 Consultant PharmacistDiana Bond, Chair Emeritus 1999 ‐ Consultant PharmacistRenee Coffman*, Non‐voting, ex officio N/A N/A President, Roseman University of Health SciencesSuzanne Cram 2008 2020 Health Care ConsultantDavid Dunn, Chair Elect 2009 2021 Founder & President of Kingsbridge Wealth Management, Inc.Jeff Foreman, Emeritus 2006 ‐ Group President, Comprehensive Pharmacy ServicesMary Grear 1999 2022 Pharmacy Consulting ServicesMark J. Howard, Secretary 2005 2022 CEO Emeritus, Mountain View HospitalMark A. Hutchinson, Honorary ‐ ‐ Partner, Lawfirm of Hutchinson & SteffenAnnette Logan 2018 2022 President & CEO, Cure 4 The kids FoundationKeith MacDonald, Emeritus 1999 ‐ PharmacistRonald A. Memo 1999 2021 Business ConsultantChristine A. Petersen, Emeritus 2004 ‐ PhysicianHolly Prievo 2008 2020 Walgreens Healthcare Supervisor, Las Vegas, NevadaArmin Quedzuweit, Emeritus 1999 ‐ PharmacistHarry Rosenberg*, Non‐voting, ex officio N/A N/A Founding President Emeritus, Roseman University of Health SciencesJohn H. Rich, 2018 2022 Health Care Development ConsultantRick Smith 2018 2022 President & CEO, RDS Enterprises, LLCDavid L. Steinberg 2014 2022 PhysicianRobert H. Talley, Treasurer 2008 2020 Executive Director of Nevada Dental AssociationCarlene Walker 2010 2021 Former Utah State SenatorLeona Winger, Emeritus 2006 ‐ Former Councilwoman, City Council, South Jordan, UtahMichele Belsey, Honorary ‐ ‐ VP, Campus Recruitment, Revature*Dr. Renee Coffman, President of the University, and Dr. Harry Rosenberg, Founding President Emeritus, are non‐voting ex‐officiomembers.
Defining Characteristics(See PLOM Page A‐1 through A‐3)
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Focus on Enrollment Growth and Expansion of Degree Offerings
― 1,630 FTE enrollment for 2019‐20, up 16% from 1,404 FTE enrollment for 2014‐15― Enrolled inaugural cohort of 12 students in Master of Science in Nursing / Family Nurse Practitioner program― Growth of College of Dental Medicine DMD program to 100 student per cohort
Innovative Curricular Approach and Strength of Academic Program
― “Six Point Mastery Learning Model” recently trademarked by the University― One course at a time with students achieving a score of 90% or higher (mastery) before advancing― Significant clinical experience offered for Roseman students, focus on hands‐on education― Hexagonal “classroom in the round” fosters faculty and peer interaction
Competitive Position and Student Demand
― Acceptance rate of 58%, 41%, and 9% for PharmD, BSN, and DMD programs, respectively, for 2019‐20― Matriculation yield of at least 51% for all Roseman degree programs for 2019‐20― Over 90% student retention over the past three years for AEODO, DMD, MBA, PharmD, and BSN programs― Average nursing licensure exam pass rate of 90% over the past five years; 100% for orthodontic residents
Importance of the Project
― Continue strategic goal of acquiring leased facilities to eliminate future lease renewals and rent escalations,foster confidence to invest in leased spaces, and to demonstrate growth and stability to constituents
― Acquisition of properties with Series 2020 Bonds will eliminate $4.9 million of FY 2019 expenses
Financial Performance
― GAAP‐based surpluses of $13.1 and $8.3 million, respectively, for FY 2019 and FY 2020― Net tuition revenue growth of 48.7% over past five fiscal years, fostering growth of investment assets to $26.2
million
Enrollment(See PLOM Page A‐11)
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Roseman has increased its full‐time equivalent enrollment by 16% over the past five academic years. As of fall2019, Roseman’s enrollment is 1,630 FTE students, with most of the University’s student population enrolled inthe College of Pharmacy’s PharmD program and the College of Nursing BSN and ABSN programs.
The following table depicts Roseman’s FTE enrollment by degree program for the past five academic years andthe current academic year:
The following table sets forth the University’s enrollment by degree program at both its Henderson, Nevadaand South Jordan, Utah campuses for the 2019‐20 academic year
Total FTE Enrollment2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20
College of Pharmacy (PharmD)1 762 741 720 697 677 630College of Nursing (BSN & ABSN) 269 312 385 505 563 584College of Nursing (MSN/FNP) N/A N/A N/A N/A N/A 12MBA Program (MBA)2 37 44 25 18 9 9College of Dental Medicine (AEODO/MBA) 31 30 30 30 30 30College of Dental Medicine (DMD) 305 320 326 330 348 365Total FTE Enrollment 1,404 1,447 1,486 1,580 1,627 1,630
1 Total enrollment for both Henderson and South Jordan campuses2 Excludes dual‐program studentsSource: Internal University records
Roseman University FTE Enrollment by CampusPharmD AEODO DMD BSN ABSN MBA MSN/FNP Total
Henderson Campus 408 30 0 109 245 9 12 813South Jordan Campus 222 0 365 80 150 0 0 817Total Enrollment 630 30 365 189 395 0 0 1,630Source: Internal University records
Student Demand(See PLOM Pages A‐12)
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The following tables highlights the University’s application, acceptance, and enrollment statistics by degree program for the pastsix academic years and the current academic year:
Applications, Acceptances and Enrollments2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20
College of Pharmacy (PharmD)Number of Applications 825 769 659 653 861 625 474Number of Acceptances 367 415 347 346 349 319 275Acceptance Rate 44% 54% 53% 53% 41% 51% 58%Number of Matriculations 260 261 252 248 241 232 206Matriculation Rate 71% 63% 73% 72% 69% 73% 75%College of Nursing (BSN & ABSN)1
Number of Applications2 222 207 150 685 1,045 691 968Number of Acceptances 167 112 98 473 419 398 395Acceptance Rate 75% 54% 65% 69% 40% 58% 41%Number of Matriculations3 131 107 85 333 363 364 354Matriculation Rate 78% 96% 87% 70% 87% 91% 90%College of Nursing (MSN/FNP)Number of Applications N/A N/A N/A N/A N/A N/A 17Number of Acceptances N/A N/A N/A N/A N/A N/A 17Acceptance Rate N/A N/A N/A N/A N/A N/A 100%Number of Matriculations N/A N/A N/A N/A N/A N/A 12Matriculation Rate N/A N/A N/A N/A N/A N/A 71%
1 Beginning in fiscal year 2019‐20, the numbers for the College of Nursing include all students starting from the October cohort in the previous year (2018) in order to be consistent with the November 13th count for enrollment.2 Number includes South Jordan and Henderson campuses. Not all applicants met qualifications. Incomplete applications were not counted in 2018‐19.3 Not all qualified students opt for interview and admissions decision; beginning in 2018‐19, duplicate students who rolled over to different cohorts were removed from the count.Source: Internal University records
Student Demand(See PLOM Pages A‐12)
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The following tables highlights the University’s application, acceptance, and enrollment statistics by degree program for the pastsix academic years and the current academic year:
Applications, Acceptances and Enrollments2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20
Master of Business Administration (MBA)Number of Applications 75 76 114 82 73 97 33Number of Acceptances 75 76 114 81 53 77 33Acceptance Rate 100% 100% 100% 99% 73% 79% 100%Number of Matriculations 65 70 104 78 47 57 33Matriculation Rate 87% 92% 91% 96% 89% 74% 100%College of Dental Medicine (AEODO/MBA)Number of Applications 99 126 126 111 109 96 110Number of Acceptances 10 10 14 10 10 10 10Acceptance Rate 10% 8% 11% 9% 9% 10% 9%Number of Matriculations 10 10 10 10 10 10 10Matriculation Rate 100% 100% 71% 100% 100% 100% 100%College of Dental Medicine (DMD)Number of Applications 1,978 1,939 1,872 2,217 2,093 2,015 2219Number of Acceptances 185 183 177 165 174 181 196Acceptance Rate 9% 9% 9% 7% 8% 9% 9%Number of Matriculations 80 82 82 84 84 100 100Matriculation Rate 43% 45% 46% 51% 48% 55% 51%
Source: Internal University records
Academic Outcomes: Job Placement & Pass Rates(See PLOM Page A‐14 and A‐15)
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The University’s Administration believes that most of its graduates are successful in finding full‐timeemployment immediately following graduation as evidenced by the University’s student loan default rate,which averages 1.5%.
University Administration also indicate that 100% of a recent class of Roseman BSN graduates were offeredemployment by a health system serving the greater Las Vegas area.
United States Department of Labor (“USDOL”) project employment of dentists to grow by 19 percent from 2016to 2026, 12 percent higher than the average growth rate for all occupations. The USDOL indicates that dentistswill continue to see an increase in public demand for their services as studies continue to link oral health tooverall health.
The following table sets forth the state accreditation pass rates by program for the University’s students for thepast five academic years.
Roseman State Licensure Passing Rates2013‐14 2014‐15 2015‐16 2016‐17 2017‐18
Pharmacy 93% 94% 81% 83% 83%Nursing – Henderson 95% 93% 86% 93% 90%Nursing – South Jordan 100% 96% 82% 93% 93%Orthodontics Residency 100% 100% 100% 100% 100%Source: Internal University records
Tuition(See PLOM Pages A‐16 through A‐17)
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Roseman University Tuition & Fees Summary2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20
College of Pharmacy (PharmD)Tuition $ 46,600 $ 48,464 $ 50,403 $ 52,000 $ 54,100 $ 55,182% Increase 2.9% 3.8% 3.8% 3.1% 3.9% 2.0%First Year Student Fees1 $ 2,133 $ 2,607 $ 2,492 $ 2,413 $ 2,402 $ 2,404Second Year Student Fees1 200 400 400 400 400 400Third Year Student Fees1 300 400 600 775 775 775College of Nursing (BSN)Tuition2 $ 32,360 $ 32,683 $ 33,000 $ 33,333 $ 33,667 $ 34,000% Increase 2.9% 1.0% 1.0% 1.0% 1.0% 1.0%First Year Student Fees1 $ 2,845 $ 4,904 $ 4,919 $ 4,916 $ 4,980 $ 5,140Second Year Student Fees 200 200 200 200 200 200College of Nursing (ABSN)Tuition3 $ 52,620 $ 53,146 $ 53,667 $ 54,200 $ 54,800 $ 55,350Percent Increase 1.0% 1.0% 1.0% 1.0% 1.1% 1.0%First Year Student Fees1 $ 2,845 $ 4,904 $ 4,919 $ 4,916 $ 4,980 $ 5,140Second Year Student Fees 200 200 200 200 200 200College of Nursing (MSN/FNP)Tuition4 N/A N/A N/A N/A N/A $ 37,500Master of Business Administration (MBA)Tuition5 $ 20,400 $ 20,610 $ 20,820 $ 21,030 $ 21,240 $ 21,300% Increase 1.9% 1.0% 1.0% 1.0% 1.0% 0.3%First Year Student Fees $ 400 $ 400 $ 400 $ 400 $ 400 400Second Year Student Fees 654 654 669 669 669 669Pharmacy / MBA Student Fees6/7 104 104 169 169 169 168College of Dental Medicine (AEODO/MBA)Tuition $ 63,640 $ 64,607 $ 65,900 $ 67,900 $ 71,600 $ 77,330% Increase 3.0% 2.0% 2.0% 3.0% 5.4% 7.4%First Year Student Fees $ 8,906 $ 8,804 $ 8,903 $ 8,915 $ 9,327 $ 9,818Second Year Student Fees 9,200 9,400 9,400 9,400 9,886 10,645Third Year Student Fees 9,700 10,000 10,000 10,000 10,508 11,300
The following table displays the Academy’s tuition and fees for the current and past five academic years:
Source: Internal University records1 Student fee increases in FY 2016 reflect increases in lab and technology fees2 Tuition cost based on 12 months of an 18‐month program3 Tuition cost based on a 15‐month program
4 Tuition cost based on a 23‐month program5 MBA tuition rate based on 30 credit hours6 MBA fees are discounted for students also enrolled in the College of Pharmacy (PharmD)7 Prior to fiscal year 2016‐17, graduation fees were not included8 First Year Student Fees include an on‐time cost for a medical kit
Competitor Schools: Tuition(See PLOM Page A‐17)
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Comparative Tuition & Fees: DMDTuition Fees Total Tuition and Fees
University of the Pacific $114,720 $17,680 $132,400 University of Southern California $ 94,419 $17,990 $112,409Loma Linda University $ 87,015 $15,017 $102,032 Midwestern University $ 80,118 $16,711 $ 96,829 Roseman University $ 77,147 $15,033 $ 92,180 Arizona School of Dentistry $ 76,282 $13,998 $ 90,280 University of Colorado Dental $ 80,989 $ 2,105 $ 83,094 Univ. of California, San Francisco $ 62,665 $13,269 $ 75,934 University of the Pacific $114,720 $17,680 $132,400 Source: Internal University records
Comparative Tuition & Fees: PharmDPharmD Annual
TuitionProgramDuration
PharmD Total Program Tuition
University of Southern California $58,836 4 Years $235,344University of the Pacific $78,354 3 Years $235,062Midwestern University $62,009 3 Years $186,027Loma Linda University $45,900 4 Years $183,600Roseman University $55,182 3 Years $165,546Touro University (CA) $40,720 4 Years $162,880University of Southern California $58,836 4 Years $235,344University of the Pacific $78,354 3 Years $235,062Midwestern University $62,009 3 Years $186,027Source: Internal University records
The following table compare 2019‐20 tuition for the DMD program and the PharmD program with certain otherinstitutions with which Roseman compares itself and regularly competes for students:
Financial Aid(See PLOM Page A‐18)
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The University offers a minimal amount of institutional financial aid to its students, in the form of scholarshipsallotted by the University’s Administration to each degree program. For the 2018‐19 academic year, theUniversity granted approximately $65,000 in institutional aid to its students
Roseman participates in the Federal Pell Grant and Federal Supplemental Educational Opportunity Grantprograms which are only available to undergraduate BSN students. Pell Grants provided $835,747 to RosemanBSN students for the fiscal year ended June 30, 2019.
The Department of Education reports that default rates on federal student loans for Roseman students were0.5% for fiscal year 2013, 1.4% for fiscal year 2014, 0.9% for fiscal year 2015 and 1.0% for fiscal year 2016 whichis the most current data available from the U.S. Department of Education.
The following table includes information on the amount of financial grants and scholarships received byRoseman BSN students, from both governmental and institutional sources, for the five most recent fiscal yearsfor which data is available. The data below excludes federal or private student loans and work‐study funds, forwhich students are also eligible.
Financial Aid Awards for BSN Students2014‐15 2015‐16 2016‐17 2017‐18 2018‐19
Pell Grants $ 439,440 $ 410,413 $ 505,311 $ 682,784 $ 835,747Other Federal Grants 22,500 22,500 21,150 25,319 39,750Institutions Aid 6,200 15,134 20,025 13,025 31,475% Students Receiving Aid 92% 87% 85% 90% 80%Average Aid Per Student $ 16,055 $ 14,865 $ 18,006 $ 18,529 $ 18,715Source: Internal University records
Historical Unrestricted Income Statement(See PLOM Page A‐21)
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Statement of Activities – Without Donor Restrictions (Unrestricted)2015 2016 2017 2018 2019
REVENUESTuition and fees $68,770,675 $75,906,534 $82,170,489 $85,787,821 $89,856,680Orthodontic clinic income 956,912 828,768 801,445 786,197 701,238Dental clinic income 1,386,008 2,008,081 2,542,276 3,193,247 3,636,917Medical clinic income ‐ ‐ ‐ 483,392 1,106,492Contributions 3,625 40,736 9,135 6,701 10,518Grants 1,429,654 1,419,589 1,835,749 2,401,708 2,931,007Investment gains / (losses), net 368,505 940,245 804,267 806,118 1,956,370Debt restructuring gain 587,418 ‐ ‐ ‐ ‐Interest income 75,963 89,942 82,123 98,012 483,945Special events (net of direct costs) ‐ 749 ‐ ‐ ‐Other 633,925 847,404 1,192,796 910,354 1,746,897Net assets released from restrictions 502,536 690,207 914,831 842,392 861,654Total revenues 74,715,221 82,772,255 90,353,111 95,315,942 103,291,718
EXPENSESInstruction 47,650,524 56,460,086 61,788,026 47,544,206 52,035,119Academic support ‐ ‐ ‐ 10,514,734 9,173,862Student services ‐ ‐ ‐ 4,108,218 4,020,937Institutional development and support 431,673 782,804 990,826 619,026 519,511General and administrative 26,115,578 25,669,248 24,452,453 26,045,481 27,592,240Total expenses 74,197,775 82,912,138 87,231,305 88,831,665 93,341,669
CHANGE IN NET ASSETS 517,446 (139,883) 3,121,806 6,484,277 9,950,049
NET ASSETSNet assets at beginning of year 57,935,589 58,453,035 58,313,152 61,434,958 67,919,235Net assets at end of year $58,453,035 $58,313,152 $61,434,958 $67,919,235 $77,869,284
Source: University audited financial statements for fiscal year ended June 30, 2015 through June 30, 2019
Historical Net Assets & Endowment(See PLOM Page A‐21)
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Net Assets2015 2016 2017 2018 2019
Unrestricted Net AssetsBoard designated funds $ 11,600,000 $ 11,600,000 $ 11,600,000 ‐ ‐Undesignated 46,853,035 46,713,152 49,834,958 ‐ ‐
Without Donor Restriction ‐ ‐ ‐ $ 67,919,235 $ 77,869,284$ 58,453,035 $ 58,313,152 $ 61,434,958 $ 67,919,235 $ 77,869,284
Temporarily Restricted $ 1,818,693 $ 2,064,860 $ 2,953,340 ‐ ‐Permanently Restricted 333,202 334,090 334,090 ‐ ‐With Donor Restrictions ‐ ‐ ‐ $ 5,146,441 $ 8,298,711
$ 2,151,895 $ 2,398,950 $ 3,287,430 $ 5,146,441 $ 8,298,711
Total Net Assets $ 60,604,930 $ 60,712,102 $ 64,722,388 $ 73,065,676 $ 86,167,995Source: Audited and Reviewed financial statements
Endowment2015 2016 2017 2018* 2019*
With Donor RestrictionsTemporarily Restricted $ 93,454 $ 116,499 $ 144,146 $ ‐ $ ‐Permanently Restricted 333,202 334,090 334,090 ‐ ‐Donor‐Restricted Endowment ‐ ‐ ‐ 489,774 519,682Total with Donor Restrictions $ 426,656 $ 450,589 $ 478,236 $ 489,774 $ 519,682
Without Donor RestrictionsBoard‐Designated $ 11,600,000 $ 11,600,000 $ 11,600,000 $ 11,600,000 $ 15,600,000Total Without Donor Restrictions $ 11,600,000 $ 11,600,000 $ 11,600,000 $ 11,600,000 $ 15.600.000
Total Endowment Funds $ 12,026,656 $ 12,050,589 $ 12,078,236 $ 12,089,774 $ 16,119,682*Presentation for fiscal years ended June 30, 2018 and 2019 are updated to reflect changes in accounting standards presentationSource: Audited and Reviewed financial statements
Historical Investment Portfolio(See PLOM Page A‐25)
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Roseman University Investments2015 2016 2017 2018 2019
Equity InvestmentsDomestic $ 5,567,823 $ 5,614,434 $ 5,132,567 $ 5,254,329 $ 8,750,114International 853,072 813,636 822,343 850,539 ‐
6,420,895 6,428,070 5,954,910 6,104,868 8,750,114Fixed Income InvestmentsU.S. Government and agency 21,363 20,609 594,214 5,229,958 8,804,893Treasury bonds 7,320,667 7,351,619 6,307,474 6,663,868 1,585,608Corporate securities ‐ ‐ 1,946,537 2,951,036 5,344,599Other investments and debt service reserve funds, not at fair value, certificates of deposit and money market funds
‐ ‐ 4,398,038 9,046,275 11,548,619
7,342,030 7,373,228 13,246,263 23,891,137 27,283,719
Total Investment Assets $ 13,762,925 $ 13,800,298 $ 19,201,173 $ 29,996,005 $ 36,033,833
Short‐term investments and debt service reserve funds, not at fair value ‐ ‐ ‐ $ 2,666,684 $ 2,839,959Long‐term investments and debt service reserve funds, not at fair value ‐ ‐ ‐ 6,379,591 8,708,660Short‐term investments and debt service reserve funds* $ 13,362,376 $ 13,364,739 $ 18,732,083 13,272,962 17,004,475Long‐term investments and debt service reserve funds*
400,549 435,559 469,090 7,676,768 7,480,739
Total Investment Assets $ 13,762,925 $ 13,800,298 $ 19,201,173 $ 29,996,005 $ 36,033,833* The presentation of this disclosure that is obtained from the University’s audited financial statements was updated in the 2018 and 2019 audited financial statements to include debt service fundsSource: Audited and Reviewed financial statements
The University has been actively engaged with a wide variety of donors to support the planned College ofMedicine as well as to foster increased University support for student financial aid. Focused fundraising effortsbegan in September 2017. As of January 2020, Roseman has received $8.9 million in cash and raised $3.5million in pledges, of which $2.7 million are scheduled to be received by June 30, 2021, in support the Collegeof Medicine. In addition, the Board of Trustees designated $4.0 million of institutional funds to the Board‐designated endowment during the fiscal year ended June 30, 2019, in an effort to continue to grow theUniversity’s asset base to support the College of Medicine.
University Administration has currently targeted a cumulative fundraising goal of $100 million in support of theCollege of Medicine.
The University recently received a gift agreement for $1.5 million, of which $1.0 million is for College ofMedicine operations and $0.5 million is for student scholarship. The entire amount will be paid over a period often years. The first payment of approximately $0.2 million was received December 2019 and is included in the$8.9 million of total fundraising receipts. The remaining $1.3 million of the gift is included as part of theUniversity’s $3.5 million in outstanding pledges.
The following table lists gifts received by the University, for the College of Medicine and other fundraisingpriorities, during the past five fiscal years:
Advancement Program(See PLOM Pages A‐28 and A‐29)
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Five Year Total Philanthropic Support2015 2016 2017 2018* 2019*
Cash $ 1,111,710 $ 270,333 $ 873,064 $ 2,312,676 $ 3,235,911Gifts in‐kind 328,847 354,023 388,102 266,582 671,964Total Philanthropic Support $ 1,440,557 $ 624,356 $ 1,261,166 $ 2,579,258 $ 3,907,875Source: Internal University Records
College of Medicine(See PLOM Pages A‐5, A‐9, A‐10 and A‐31)
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Roseman’s strategic focus has been on delivering high demand, high quality health‐related academicprograms. The University most recently expanded the College of Nursing by adding the Master of Science inNursing / Family Nurse Practitioner degree program. While the University continues to pursue the College ofMedicine, it is also focused on its existing programs and other areas of opportunity.
Roseman has reset its approach to gaining LCME accreditation for the College of Medicine, with a currentfocus on building clinical practices, hiring a Dean of the College of Medicine, bringing on additional facultymembers, establishing relationships with area hospitals, and growing the University’s financial assets insupport of the College of Medicine.
The University is currently interviewing finalist candidates for Dean of College of Medicine, with a new Deanexpected to begin in spring/summer 2020.
The University has developed extensive relationships with local hospitals and health care organizations tosupport clinical training needs for medical students, as well as developing its own clinical practices under“Roseman Medical Group.”
As of January 2020, Roseman has received $8.9 million in cash from donors in support of the College ofMedicine. In addition, Roseman’s Board of Trustees designated $4.0 million to serve as Board‐designatedendowment in FY 2019, with the goal of continuing the growth of Roseman’s balance sheet and investmentassets to support the College of Medicine and University as a whole.
At the Breakthrough Building (formerly Flagship Building), Roseman has established an affiliation with Cure 4the Kids, a pediatric oncology provider for children in the greater Las Vegas area. Cure 4 the Kids currentlyleases space in the Breakthrough Building, seeing approximately 80 to 100 patients each weekday.
Project Overview: The Series 2020 Project(See PLOM Page 19 and 20)
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Bond proceeds in the approximate amount of $5,850,000 will be used to reimburse the Borrower at closing forits prior purchase of Crex‐Rancho (expected to close in February 2020).
Bond proceeds in the following approximate amount will be used at closing by the Borrower to purchase:
Sunset Vista Park I, $11,133,000 Sunset Vista Park II, $4,540,000 Stonerose Research Lab, $5,311,000
The University will acquire RiverPark Eleven ($42,000,000) pursuant to the terms of the purchase and saleagreement between the Borrower and the seller, with that transaction closing no later than April 30, 2020.
Bond proceeds will also fund capital improvements at acquired properties in the amount of $7,500,000.
Plan of FinancingSources and Uses of Funds Amount*Par Amount of Series 2020 Bonds $82,700,000Total Source of Funds $82,700,000
Uses of FundsTransfer to Project Fund $76,334,000Transfer to Reserve Fund 4,921,000Costs of issuance (including Underwriter’s Discount) 1,445,000Total Use of Funds $82,700,000
*Preliminary; subject to change
Acquisition of properties eliminates FY 2019 expenses of $4.9 million (PLOM pg. A‐2)
Security & Sources of Payment(See PLOM Pages 6 through 11)
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Security for the Series 2020 Bonds is comprised of (a) the Borrower’s Gross Revenues (subject to PermittedEncumbrances), (b) the Borrower’s interest in funds held under the Indenture, (c) deeds of trust on certainproperties in Henderson, NV, Las Vegas, NV, and South Jordan, UT, and (d) a Debt Service Reserve Fund.
Deeds of Trust related to the properties located at:
― 11 Sunset Way, Henderson, Nevada (originally pledged for Series 2007 then Series 2015)― 4 Sunset Way, Buildings A‐C and E, Henderson, Nevada― 14 Sunset Way, Building B, Henderson, Nevada― 10530 Discovery Drive, Las Vegas, Nevada (originally pledged for Series 2015)― 1 Breakthrough Way, Las Vegas, Nevada (originally pledged for Series 2015)― 10920 South River Front Parkway, South Jordan, Utah (originally pledged for Series 2012)― Upon its acquisition: 10894 South River Front Parkway, South Jordan, Utah (no later than April 30, 2020)
Security for the Series 2020 Bonds is on parity with the University’s Series 2012 Bonds, currently outstandingin the principal amount of $34,195,000 and the Series 2015 Bonds, currently outstanding in the amount of$65,255,000.
Bond Reserve Funds
― Debt Service Reserve equal to the lesser of (i) Maximum Annual Debt Service, (ii) 10% of the proceeds ofthe Series 2020 Bonds, or (iii) 125% of average annual debt service on the Series 2020 Bonds
Overview of Financial Covenants(See PLOM Pages 7 through 9)
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1.10x Debt Service Coverage Ratio, measured annually
― Definition: “Cash Flow” divided by sum of Current Maturities of Long Term Debt plus interest expense
― If the DSCR is below 1.10x but above 1.00x, failure to meet the DSCR will not constitute an event ofdefault so long as (i) the Borrower engages a consultant within 60 days to make recommendations tocomply with the DSCR and (ii) the Borrower meets the DSCR in the following fiscal year.
6.25% Operating Expenses Liquidity Covenant, measured annually
― Definition: Unrestricted Cash and Investments as a percentage of Indebtedness Outstanding
― If the Operating Expenses Liquidity is lower than 6.25% of Indebtedness Outstanding, the Borrower shallwithin 30 days of the date of calculation retain a Consultant to make recommendations with respectthereto and provide a copy of such recommendations to the Trustee. Event of default shall occur only ifthe Borrower fails to maintain Unrestricted Cash and Investments equal to at least 6.25% of theaggregate principal amount of the Indebtedness Outstanding two consecutive fiscal years.
Additional Debt
― Parity Indebtedness: 1.30x Pro Forma DSCR based on the most recent fiscal year (consultant’s certificate)and projected upcoming fiscal year (officer’s certificate).
― Short‐term, non‐recourse, and commitment indebtedness permitted. Short‐term indebtedness may notexceed 15% of Gross Revenues for the most recent fiscal year.
Risk Factors(See PLOM Pages 11 through 19)
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The following are certain investment considerations and risk factors which have been identified by theBorrower and which should be carefully considered by purchasers of the Series 2020 Bonds. The followinglist is a sample of the risk factors discussed in the PLOM and should not be considered exhaustive. Pleaserefer to pages 11 through 19 of the PLOM for further disclosures of risk factors.
Rating (See pg. 12)
Factors Affecting the Financial Performance of the University (See pgs. 12‐15)
― Student Enrollment― Reliance on Financial Aid― Endowment Income― Damage or Destruction― Changes in Senior Management― Fundraising― Changes in Accreditation and Licensure― Environmental Matters― Cybersecurity― Dependence upon Tax‐Exempt Status― College of Medicine
Matters Relating to Security for the Series 2020 Bonds (See pgs. 16‐17)
Additional Indebtedness (See pg. 18)
