Virginia College’s Munis Fall Into Distress After Breach: Filing

Averett University’s debt-service coverage ratio dropped below a certain threshold for two fiscal years, triggering an event of default, according to a Jan. 3 regulatory filing by the trustee, US Bank.

• The university is a private Baptist school in Virginia
• The insurance policies submitted by the school also “fail to include a certification from the obligor that the insurance is in full force and effect,” the filing says
• The school sold $15 million of unrated muni bonds in 2017 through a local authority
  • About $13 million of debt is outstanding, according to data compiled by Bloomberg
• One bond due ...