The University of Pittsburgh sold $475 million in bonds to refund a previous issuance and make capital improvements.
The first series of bonds, consisting of $200 million, mature on February 15, 2029, and yield 3.4%. The second series, consisting of $275 million, mature on February 15, 2034, and yield 3.54%. They received a rating of Aa1 from Moody’s Investors Service and AA+ from S&P Global Ratings.
The rating “favorably incorporates Pitt’s excellent strategic positioning as a premier urban academic and research institution with a strong student market,” Moody’s analysts wrote.
The issuance will fund a plan to revamp university facilities as it builds its research profile. The bonds will finance projects including a new student recreation and wellness center and arena and sports center. The two projects together are expected to cost almost $500 million.
Earlier this year, the university established a quantum computing innovation center. Vice Chancellor for Research Infrastructure Rob Cunningham described the move as “a natural progression” for the university, saying that it was a “natural next step.”
The university, which is public, last issued bonds in 2019. Proceeds from this week’s issuance will also refund some of those bonds.
The bonds are general obligations of the university, payable by its revenue. It has a capital budget of $389.9 million for the current academic year, including some funding disbursed by Pennsylvania that the state has not yet released.
Barclays Capital Inc and Wells Fargo Bank, NA, served as lead underwriters on the issuance.