The Dormitory Authority of the State of New York last week gave final approval to $150 million of bonds for a university and preliminary approval to $72.8 million for lower education projects.
Fordham University plans to use the proceeds of up to $150 million of bonds to partially finance the construction of a $250 million, 21-story building at its Lincoln Center campus in Manhattan.
The planned building includes nine stories of law school academic facilities and a 12-story residence hall that will house 430 students.
The university may issue up to $50 million of the debt as variable-rate demand bonds with a five-year mandatory put to take advantage of lower rates on the short end of the yield curve, according to board materials.
The variable-rate bonds would not use a liquidity facility and they would be issued on the condition that they not jeopardize Fordham's ratings or liquidity covenants on current debt. The long-term debt will have maturities up to 31 years.
JPMorgan will lead manage the deal. Squire, Sanders & Dempsey LLP is bond counsel.
DASNY also gave preliminary approval for $66 million of bonds on behalf of Trevor Day School in Manhattan to refinance a bank loan and to partially finance the construction of a 12-story school building to serve grades seven through 12.
The bonds are expected to be sold through private placement with RBS Citizens NA or as a negotiated offering of variable-rate bonds with a direct pay letter of credit from RBS.
The St. Lawrence-Lewis Board of Cooperative Educational Services received preliminary approval for $6.8 million of fixed-rate tax-exempt bonds to purchase and renovate a former nursing home in Canton that will be used for administrative and program services.
