The Development Authority of Fulton County, Georgia, sold $34.1 million in bonds to finance athletic stadium improvements at the Georgia Institute of Technology.
The bonds mature between 2033 and 2051, yielding between 2.8% and 4.25%. They pay interest at 5%. The securities received a rating of A+ from Fitch Ratings and A2 from Moody’s Investors Service.
The authority will loan the bond proceeds to the Georgia Tech Athletic Association (GTAA), a subdivision of Georgia Tech.
The rating reflects GTAA’s “generally self-sufficient operations,” as well as its “high degree of alignment” with Georgia Tech and the university’s “very strong underlying credit profile,” Fitch analysts wrote.
College sports have long acted as financial engines for universities, though the revenue they produce is often confined to school athletic departments, which can be governed separately. GTAA generated more than $112 million in operating revenue in fiscal year 2023, according to the official statement accompanying the sale of the bonds; the university as a whole generated more than $2.5 billion that year, according to its 2024 budget.
The bond proceeds will fund improvements to Bobby Dodd Stadium, the football arena at Georgia Tech.
The bonds are special limited obligations of the development authority, payable by GTAA revenue.
J.P. Morgan Securities, LLC served as lead underwriter on the issuance, purchasing the bonds for $37.4 million. The price reflected a premium of $3.4 million. PFM Financial Advisors LLC acted as financial advisor.