A New Jersey state authority sold $183.8 million in bonds to fund grants for higher education.
The bonds, issued by the New Jersey Educational Facilities Authority, mature between 2024 and 2053, yielding between 3.38% and 4.73%. They received a rating of A from Fitch Ratings, A2 from Moody’s Investors Service, and A- from S&P Global Ratings.
“Solid economic performance matched by robust revenue growth has helped New Jersey to shrink its liabilities and build ending balances well in excess of historical experience,” Fitch analysts wrote. They added that “high liabilities and elevated carrying costs are likely to remain a longer-term constraint on its budget choices.”
The issuance comes as New Jersey increases its investment in its colleges and universities. In July, the state announced $400 million in capital facilities grant funding.
The bonds issued this week will fund grant-financed capital improvement projects at nine New Jersey institutions: Rutgers University, Kean University, Montclair State University, Ramapo College of New Jersey, Stockton University, The College of New Jersey, William Paterson University, Drew University, and Fairleigh Dickinson University.
“Our institutions of higher education are critical economic engines and play an essential role in educating and training the next generation of New Jersey’s workforce,” New Jersey Secretary of Higher Education Brian K. Bridges said in a press release.
The bonds are special, limited obligations of the authority, payable by annual appropriations from the state.
Siebert Williams Shank & Co, LLC served as lead underwriter on the issuance, purchasing the bonds for $192 million. The price reflected a premium of $8 million.