Hofstra University Plans $61M of Bonds

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On the heels of a late 2016 credit upgrade, Hofstra University on Long Island is planning $61 million of bonding this year for a new academic building and refinancing old debt.

The Town of Hempstead Local Development Corporation granted preliminary approval Thursday for the private college to issue $42 million of tax-exempt bonds for the construction of new 52,000-square foot Zarb School of Business building along with other renovation and maintenance projects. The agency also backed plans for school in Hempstead, N.Y. to refinance $19 million of bonds that were issued in 2007. A meeting to schedule final approval of the borrowing is slated for late April, according to a spokesman for the conduit issuer.

"In addition to a new School of Business building, the financing relates to ongoing maintenance projects such as roofs, refurbishments and the like, as well as the refinancing of existing debt if interest rates are favorable," Hofstra spokeswoman Karla Schuster said in a statement. "We expect to break ground on the new business school building this spring."

Moody's Investors Service upgraded Hofstra one notch to A2 last November citing "a strong operating performance" with manageable near-term borrowing plans. The school, which is located 25 miles outside of Manhattan, enrolled roughly 11,000 full-time students for the fall 2016 semester, according to Moody's.

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