The Board of Trustees of the Colorado School of Mines sold $199.2 million in bonds to finance on-campus housing.
The bonds mature between 2025 and 2054, yielding between 2.58% and 4.08%. They received an enhanced rating of Aa2 from Moody’s Investors Service and AA from S&P Global Ratings. Moody’s assigned an underlying rating of A1, and S&P assigned an underlying rating of A+.
The rating reflects the university’s “very good strategic positioning based on its established niche in earth sciences, energy and the environment, drawing steady increases in enrollment, net tuition revenue and research activity,” Moody’s analysts wrote.
The bond proceeds will fund the construction of an 800-bed residence hall for sophomores. Development will begin this month and is expected to complete in 2026, according to the official statement accompanying the sale of the bonds.
The issuance is the university’s second in the past six months that intends to finance on-campus residence halls. The school sold $132 million in bonds last October to fund more housing for seniors and graduate students.
The bond sales come amid increasing enrollment at the Colorado School of Mines, leading to a shortage of on-campus housing. The school enrolls 7,000 students, a 15% increase over 2019 levels.
The Colorado School of Mines is a public university in the Denver suburbs. The bonds are special, limited obligations of the university, payable by its revenue.
Morgan Stanley & Co LLC served as underwriter on the issuance, purchasing the bonds for $213 million. The price reflected a premium of $14 million. North Slope Capital Advisors acted as municipal advisor.