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Princeton Continues Massive Bond Sale With $809 Million Issuance

By Munichain News Desk

The New Jersey Educational Facilities Authority sold an additional $809.2 million in bonds on behalf of Princeton University, adding to the $659 million the authority issued for the school last week. 

The 2024 Series A bonds mature between 2030 and 2043, yielding between 2.39% and 3.22%. They pay interest at 5%. The securities received a rating of Aaa from Moody’s Investors Service and AAA from S&P Global Ratings.

The authority will loan the bond proceeds to Princeton, an Ivy League school in a namesake New Jersey town.

The rating reflects the university’s “substantial” wealth, significant amount of cash and investments, and “premier” reputation, according to Moody’s. “Princeton’s exceptional strategic positioning is further supported by a strong culture of philanthropy,” Moody’s analysts wrote.

The bond proceeds will fund campus improvements at Princeton, including more student housing, renovations to athletics facilities, and a new on-campus art museum. 

Princeton’s bond sale is bolstered by its massive endowment, which reached $34 billion in June of last year; the university is the wealthiest in the United States as measured by endowment per student. The school also has $35 billion in cash and investments and a three-year average gifts per student of $46,000, according to Moody’s.

The bonds are special and limited obligations of the Educational Facilities Authority and general obligations of the university.

BofA Securities, Inc and J.P. Morgan Securities LLC served as lead underwriters on the issuance. The Yuba Group LLC acted as financial advisor.

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