Loyola Seeks Bond Approval for Work at New Orleans Campus

DALLAS — Loyola University New Orleans plans to renovate and expand five structures on its campus in the uptown section of New Orleans with proceeds from $125 million of revenue bonds.

The Louisiana State Bond Commission will consider the Jesuit school’s request at its monthly session on Thursday. If the commission approves, the bonds would be issued by the Louisiana Public Facilities Authority.

Leon Mathes, Loyola’s associate vice president for financial affairs, said the university is planning to issue the entire authorization in a single negotiated tranche.

“Just like a lot of other nonprofits that are considering new debt, we find the low interest rates out there very attractive,” Mathes said. “We are hoping to get to the market by mid-October.”

The $73.8 million of outstanding debt issued by the authority for Loyola is rated A1 by Moody’s Investors Service and A-plus by Standard & Poor’s.

The LPFA issued $44.2 million of revenue refunding bonds for the school in 2006 and $35 million of revenue bonds in 2010.

Barclays Capital is the lead underwriter on the Loyola issue. Other underwriters include Bank of America, Wells Fargo, and Stephens Inc.

Foley & Judell LLP is Loyola’s bond counsel. Mathes said the university is not using a financial advisor on the issue, though Public Financial Management Inc. assisted in selecting the underwriters.

Bond  proceeds will be dedicated to renovations and additions at Monroe Hall, the university’s main academic building, as well as projects at four residential halls.

One of the residential buildings, Cabra Hall, will be closed over a full academic year for major renovations, according to Mathes.

The bond-financed work will complete the second phase of a two-part capital improvements program adopted by Loyola trustees in 2009.

The campus work financed with the $125 million of revenue debt should be completed within four to five years, Mathes said.

“We do have some more things that need to be done, but we’ll need to catch our breath when these projects are completed,” he said.

Phase one consisted of converting a Jesuit residence hall into a one-stop student services center that contained offices overseeing admissions, student records and finances, and the university’s bursar. An on-campus parking garage was also expanded.

Loyola was not flooded in the aftermath of Hurricane Katrina in 2005, Mathes said, but did suffer extensive wind damage to its facilities.

As a result of the storm, Loyola canceled the fall 2005 semester but reopened for spring 2006.

The university currently has 5,000 students, including 3,000 undergraduates.

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