OFFICIAL NOTICE OF BOND SALE PRELIMINARY OFFICIAL …

OFFICIAL NOTICE OF BOND SALE and

PRELIMINARY OFFICIAL STATEMENT

State Board of Regents of the State of Utah

Southern Utah University

$7,875,000 Auxiliary System and Student Building Fee Revenue

Refunding Bonds, Series 2016

Electronic bids will be received up to 9:30:00 A.M., Mountain Daylight Time, via the PARITY? electronic bid submission system, on Wednesday, April 27, 2016.

Preliminary; subject to change.

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OFFICIAL NOTICE OF BOND SALE (Bond Sale To Be Conducted Electronically)

$7,875,000* STATE BOARD OF REGENTS OF THE STATE OF UTAH

SOUTHERN UTAH UNIVERSITY AUXILIARY SYSTEM AND STUDENT BUILDING FEE REVENUE REFUNDING BONDS

SERIES 2016

Bids will be received electronically (as described under "PROCEDURES REGARDING ELECTRONIC BIDDING" below) by the Chair or the Vice Chair of the State Board of Regents of the State of Utah (the "Board of Regents") or the Chair of the Finance and Facilities Committee of the Board of Regents and the Vice President for Finance and Administration of Southern Utah University (the "University"), via the PARITY? electronic bid submission system ("PARITY"), at 9:30:00 a.m., Salt Lake City time, on Wednesday, April 27, 2016, for the purchase (all or none) of $7,875,000* aggregate principal amount of the Board of Regents' Southern Utah University Auxiliary System and Student Building Fee Revenue Refunding Bonds, Series 2016 (the "2016 Bonds") pursuant to a General Indenture of Trust, dated as of March 15, 1993, as previously amended and supplemented, and as further amended and supplemented by a Seventh Supplemental Indenture of Trust, dated as of May 1, 2016 (collectively, the "Indenture"), each by and between the Board of Regents, acting for and on behalf of the University, and Wells Fargo Bank, N.A., as trustee. The 2016 Bonds will be awarded to the successful bidder(s) on Wednesday, April 27, 2016, as described below, and issued pursuant to a resolution of the Board of Regents previously adopted on April 1, 2016. Initially-capitalized terms used and not defined herein have the meanings assigned to such terms in the Preliminary Official Statement, dated the date hereof, relating to the 2016 Bonds and to which this Official Notice of Bond Sale is attached (the "Preliminary Official Statement"), or if not defined in such Preliminary Official Statement, then in the Indenture.

DESCRIPTION OF 2016 BONDS: The purpose of the issuance of the 2016 Bonds is to (i) refund in advance of their maturity a portion of the 2008 Bonds (as defined below) (the "Refunded Bonds") (as further described in the Preliminary Official Statement and the Indenture), (ii) satisfy a debt service reserve requirement and (iii) pay costs of issuance of the 2016 Bonds.

The 2016 Bonds will be dated as of the date of issuance and delivery thereof (anticipated to be Wednesday, May 11, 2016), will be issuable only as fully-registered bonds in book-entry form, will be issued in denominations of $5,000 or any whole multiple thereof, not exceeding the amount of each maturity, and will mature (or be payable by sinking fund installment as described below) on May 1 of each of the years and in the principal amounts as follows:

* Preliminary; subject to change. See "ADJUSTMENT OF PRINCIPAL AMOUNT OF THE 2016 BONDS" in this Official Notice of Bond Sale.

YEAR

PRINCIPAL AMOUNT1

YEAR

PRINCIPAL AMOUNT1

2019 2020 2021 2022 2023 2024 2025 2026

$ 390,000 400,000 415,000 430,000 445,000 475,000 495,000 520,000

2027 2028 2029 2030 2031 2032 2033

TOTAL

$ 545,000 570,000 600,000 620,000 640,000 655,000 675,000

$7,875,000

TERM BONDS AND MANDATORY SINKING FUND REDEMPTION AT BIDDER'S OPTION: 2016 Bonds scheduled to mature on one or more of the above-designated maturity dates may be rescheduled, at bidder's option, to mature as term bonds on one or more dates within that period, in which event the 2016 Bonds will mature and be subject to mandatory sinking fund redemption in such amounts and on such dates as will correspond to the above-designated maturity dates and principal amounts maturing on those dates.

ADJUSTMENT OF PRINCIPAL AMOUNT OF THE 2016 BONDS: The Board of Regents may adjust the aggregate principal amount of the 2016 Bonds by the amount necessary to properly size the issue so that the total amount available to the University will be approximately $9,700,000, which is the amount necessary to provide for (i) payment of all costs of issuance (including fees in respect of the Policy (as hereinafter defined) and the debt service reserve guaranty policy issued by the Bond Insurer (as hereinafter defined), but excluding underwriter's discount) payable by the Board of Regents and (ii) the amount necessary, together with other available moneys, to fund a deposit to an irrevocable trust escrow account with Wells Fargo Bank, N.A. to be used to refund the Refunded Bonds on May 1, 2018. The dollar amount of the price bid by the successful bidder may be changed as described herein but the interest rates specified by the successful bidder for all maturities will not change. A successful bidder may not withdraw its bid as a result of any changes made within these limits, and the Board of Regents will consider the bid as having been made for the adjusted amount of the 2016 Bonds. The dollar amount of the price bid will be changed so that the percentage net compensation to the successful bidder (i.e., the percentage resulting from dividing (a) the aggregate difference between the offering price of the 2016 Bonds to the public and the price to be paid to the Board of Regents, by (b) the principal amount of the 2016 Bonds) does not increase or decrease from what it would have been if no adjustment was made to the principal amounts shown above.

If the Board of Regents elects to make such an adjustment, the amount of such adjustment will be allocated to increase or decrease the principal amount of the 2016 Bonds maturing on one or more of the above-designated maturity dates for the 2016 Bonds, all as determined by the Board of Regents, with the advice of Zions Public Finance, Inc., the municipal advisor to the Board of Regents (the "Municipal Advisor"). The Board of Regents expects to advise the successful bidder as soon as possible, but expects no later than 10:30 a.m., Salt Lake City time, on the date of sale, of the amount, if any, by which the aggregate principal amount of the 2016 Bonds will be adjusted and the corresponding changes to the principal amount of the 2016 Bonds maturing on one or more of the above-designated maturity dates for

1 Preliminary; subject to change. See caption "ADJUSTMENT OF PRINCIPAL AMOUNT OF THE 2016 BONDS" in this OFFICIAL NOTICE OF BOND SALE.

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the 2016 Bonds. Any such adjustment will be in an amount of $5,000 or a whole multiple thereof. The Board of Regents will consider the bid as having been made for the adjusted amount of the 2016 Bonds.

To facilitate any adjustment in the principal amounts, the successful bidder is required to indicate by facsimile transmission to the Municipal Advisor at fax number (801) 844-4484 within one-half hour of the time of bid opening, the amount of any original issue discount or premium on each maturity of the 2016 Bonds and the amount received from the sale of the 2016 Bonds to the public that will be retained by the successful bidder as its compensation.

RATINGS: The Board of Regents will, at its own expense, pay costs of issuance of the 2016 Bonds, including the fees of Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business, for rating the 2016 Bonds. Any additional ratings shall be at the option and expense of the bidder.

PURCHASE PRICE: The aggregate purchase price to be bid for the 2016 Bonds shall not be less than the principal amount of the 2016 Bonds (preliminarily estimated at $7,875,000*). The final par amount of the bonds may be adjusted (either increased or decreased) as provided above under "ADJUSTMENT OF PRINCIPAL AMOUNT OF THE 2016 BONDS".

INTEREST RATES: Bidders must specify the rate of interest with respect to each maturity of Bonds. Bidders will be permitted to bid different rates of interest for each separate maturity of Bonds, but:

(a) the highest interest rate bid for any of the 2016 Bonds shall not exceed 5.00% per annum;

(b) each interest rate specified in any bid must be in a multiple of one-eighth or onetwentieth of one percent (1/8th or 1/20th of 1%) per annum;

(c) no 2016 Bond shall bear more than one rate of interest;

(d) interest shall be computed from the dated date of a Bond to its stated maturity date at the single interest rate specified in the bid for the 2016 Bonds of such maturity;

(e) the same interest rate shall apply to all Bonds maturing at one time;

(f) the purchase price must be paid in immediately available funds, and no bid will be accepted that contemplates the cancellation of any interest or the waiver of interest or other concession by the bidder as a substitute for immediately available funds;

(g) any premium must be paid in the funds specified for the payment of the 2016 Bonds as part of the purchase price;

(h) there shall be no supplemental interest coupons;

(i) a zero percent (0%) interest rate may not be used; and

* Preliminary; subject to change.

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