Oregon State University sold $74.2 million in bonds to finance capital improvements and refund previously issued securities.
The university issued the bonds in three series. The tax-exempt Series 2024A bonds, consisting of $28.1 million, mature between 2036 and 2052, yielding between 3.46% and 4.36%. The taxable Series 2024B bonds, consisting of $20 million, mature in 2029 and yield 4.98%. The Series 2024C bonds, consisting of $26 million, mature between 2025 and 2045, yielding between 3.68% and 4.23%. The securities received a rating of Aa3 from Moody’s Investors Service.
The rating “reflects the university’s important role as the State of Oregon’s (Aa1/stable) land grant institution, educating a large share of residents and with a sizeable research profile further reenforcing its academic reputation,” Moody’s analysts wrote.
The university will use the bond proceeds to fund capital projects, including upgrades to dorms and classrooms. It will also use the issuance proceeds to achieve debt service savings by refunding bonds that it sold in 2015 and 2019.
The bonds are general revenue obligations of the university, payable by tuition, rents, and other operating revenue. The university recorded $439 million in general revenue last fiscal year, according to the official statement accompanying the sale of the bonds.
BofA Securities, Inc served as lead underwriter on the issuance. PFM Financial Advisors LLC acted as municipal advisor.