Virginia issued $182.2 million in bonds to finance improvements at state universities and refund previously issued securities.
The state sold the bonds in two series. The Series 2024A bonds, consisting of $64.1 million, mature between 2025 and 2044, yielding between 2.46% and 3.75%. The Series 2024B bonds, consisting of $118.1 million, mature between 2025 and 2034, yielding between 2.46% and 2.9%. The securities received a rating of AAA from Fitch Ratings, Aaa from Moody’s Investors Service, and AAA from S&P Global Ratings.
The rating reflects Virginia’s “substantial fiscal resources, careful management of financial operations and debt, and exceptional gap-closing capacity,” Fitch analysts wrote.
The Series 2024A bond proceeds will finance student housing upgrades at James Madison University (JMU) and the College of William & Mary. About $50 million will fund student housing at JMU and $20 million will support dormitory renovations at William & Mary. JMU has about twice as many students as William & Mary.
The Series 2024B bonds will refund securities the state sold in 2013 and 2014.
The bonds are general obligations of the state, backed by its full faith and credit.
BofA Securities, Inc served as underwriter on the issuance. Public Resources Advisory Group acted as financial advisor.