Boston College has scheduled a $335 million bond sale Tuesday for both retail and institutional investors.
Barclays is lead manager for the negotiated sale, which will feature two tranches.
The sale includes $180 million of Series 2013 unsecured taxable bonds and $155 million of Series 2013S tax-exempt revenue bonds. The Massachusetts Development Finance Agency will issue the tax-exempt series.
Boston College, a Catholic university, expects proceeds to benefit construction and capital improvements at its Chestnut Hill, Mass., campus, including renovations to St. Mary's Hall, the second-oldest building on campus and the primary residence of its Jesuit priests. The interior and exterior work on St. Mary's, which began Jan. 14, is expected to continue through November 2014.
The school's board of trustees approved the St. Mary's Hall renovation project last year. According to the BC website, the renovations will also enable conversion of the majority of the south wing of the building to academic space, which the communication and computer science departments, as well as the Woods College of Advancing Studies, will occupy when the building reopens, expected in January 2015.
Moody's Investors Service rated the bonds Aa3 with a stable outlook. The school will have $934 million of rated debt outstanding after the sale, according to Moody's, which calculated the debt at 1.33 times fiscal 2012 operating revenue.
"The Aa3 rating reflects the university's excellent student market position, track record of fiscal discipline, successful fundraising, limited revenue diversity and elevated operating leverage," Moody's wrote in a report. The rating company said the school also benefits from an all fixed-rate and amortizing debt structure.
Challenges, according to Moody's, include a pro-forma debt level up 27% from May 31, 2012, ongoing capital needs and limited revenue diversity.
BC has an enrollment of more than 13,000 full-time equivalent students and net tuition per student of $27,462 in fiscal 2012. Its cash-and-investment pool is $1.9 billion as of the end of fiscal 2012, 49% of which is unrestricted. "Monthly days cash on hand remains uncommonly strong at 564 days for fiscal 2012," Moody's wrote.
The school has raised more than $1 billion toward its $1.5 billion Light the World campaign.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC is counsel to Boston College. Greenberg Traurig LLP is counsel to the underwriters. Edwards Wildman Palmer LLP is bond counsel for the Series S sale.
