The Dormitory Authority of the State of New York issued $250 million in commercial paper notes on behalf of New York University (NYU).
The notes mature within 270 days of their issuance. They received a rating of P-1 from Moody’s Investors Service and A-1+ from S&P Global Ratings.
The rating reflects NYU’s Aa2 issuer rating as well as its “strong debt and treasury management practices, and robust and well-diversified self-liquidity assets,” Moody’s analysts wrote.
The issuance comes as the university continues to implement an expansion plan that it set in motion almost 20 years ago. In 2007, NYU created a strategic plan that called for six million square feet of space. The university’s interior space currently has an area of five million square feet, according to the NYU website.
The note proceeds will fund a series of capital improvements and refinance existing commercial paper.
The notes are special, limited obligations of New York’s dormitory authority and general obligations of NYU, payable by its revenue.
The university had $11.5 billion in debt outstanding as of last August, according to Moody’s. Bonds issued by the authority made up about $4.4 billion of that total, according to the official statement accompanying the sale of the bonds.
BofA Securities, Inc, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and Wells Fargo Bank, NA served as dealers on the commercial paper notes.