The $582 million bond sale will fund capital projects and refinance existing debt.
State Treasurer Erick Russell and University of Connecticut officials on Wednesday announced the pricing of a $582 million bond sale to fund capital projects and refinance existing debt.
The deal — the largest in the UConn 2000 program’s history — includes $434 million in tax-exempt general obligation bonds and $148 million in taxable bond anticipation notes.
Proceeds include $226 million in new-money bonds, which with premiums will provide about $252 million for capital improvements at UConn’s Storrs and UConn Health campuses, including academic and research facilities, library investments, and telecommunications, equipment and infrastructure upgrades.
The bond anticipation notes will also finance
UConn Health’s acquisition of and capital improvements to Waterbury Hospital.
The bonds carry a 20-year interest cost of 3.6%. The deal also refinances $208 million in prior bonds, generating an estimated $20 million in debt service savings over 10 years, according to Russell and UConn Executive Vice President for Finance and Chief Financial Officer Jeff Geoghegan.
Retail investors were given priority during the March 9 order period, generating $317 million in orders, including $134 million from Connecticut-based buyers. Institutional investors placed $537 million in orders during the March 10 order period.
The UConn 2000 bonding program was established in 1995 and has been expanded and extended three times. In total, it is expected to provide $5.7 billion for capital improvements at the university over a 36-year period.
RBC Capital Markets led the underwriting syndicate. Pullman & Comley LLC and Hawkins Delafield & Wood LLP served as co-bond counsel. Hardwick Law Firm LLC and MWH Law Group LLP served as co-underwriters’ counsel. Public Financial Management was the financial advisor.
The bonds are scheduled to close March 24.
