The outstanding prior lien bonds
(through series 2013) are senior to the new series bonds, which are a second lien obligation.
At the time of the settlement, the outstanding principal amount of the bonds totalled $117.7 million: $69.9 million of 4% prior lien bonds, due in 1997; and $47.8 million of 3% general lien bonds, due in 2047.
206]), the organization plan included the issuance of $121.6 million of the 4% prior lien bonds and $60.0 million of the 3% general lien bonds.(2) Adjusted to 1987 dollars using the CPI, these amounts total about $2.5 billion, a large issue even by today's capital market standards.
The treasurer of BNI was reported  as saying, "It's a deferred problem, but it is a problem." Even though the prior lien bonds would mature in 1997, the same restrictions in the general lien bonds would continue.
In addition, the company made a tender offer of 53.5 for the 4% prior lien bonds and 39.0 for the 3% general lien bonds .
In addition, Fitch has affirmed the 'A+' rating on approximately $1.3 billion of SUNY's outstanding dormitory facilities revenue bonds series 2013A, 2015A, 2015B and 2017A and the 'AA-' rating on SUNY's approximately $393.7 million outstanding dormitory facilities lease revenue bonds (the prior lien bonds).
The bonds will have a subordinate lien on dormitory revenues and the dormitory facilities revenue fund junior to SUNY's existing prior lien bonds. The bonds feature a 1.20x additional bonds test.
Prior lien bonds are general obligation (GO) of SUNY, payable from all sources legally available to SUNY.
Money in this fund is applied directly to the trustee for payment of debt service first for the prior lien bonds and then to bonds issued under the open resolution.
The Project 1's pledge is subordinate to $41.1 million of prior lien bonds
, all of which will be refinanced as part of this issuance.
There is a rate covenant to provide at least 1.10 times coverage of debt service from net revenue, after providing for the covenant coverage for prior lien bonds