The Dormitory Authority of the State of New York is expected to sell $50 million of revenue bonds for Fordham University this week. Proceeds will refund Fordham's Series 1998 and 2002 bonds for economic savings.
Bank of America Merrill Lynch will price the bonds and Nixon Peabody LLP is bond counsel.
The bonds will be structured as serials and terms and will be subject to early redemption.
Moody's Investors Service has assigned an A2 rating with a stable outlook, citing the university's solid market position, consistently positive operations and strong philanthropic support.
Challenges include a high reliance on tuition and auxiliary revenues, and a debt structure that adds credit risk by including variable-rate demand bonds and five-year long-mode put bonds.
Standard & Poor's assigned an A rating with a stable outlook, also citing the university's operating performance, as well as its stable enrollment and demand.
Fordham University, founded by Jesuits in 1841, is an independent, not-for-profit university located in New York City.