CHICAGO — Michigan State University on Thursday will price $205 million of 40-year taxable Build America Bonds for capital projects. The school in May expects to offer a pair of refunding transactions that will restructure some of its variable-rate demand bonds and refund outstanding commercial paper.

Proceeds from the refunding will allow MSU to eliminate some risk in its debt portfolio by lowering the amount of its variable-rate debt and terminating interest-rate swaps. As part of the restructuring, the university could enter into one or more new basis swaps, in which it both pays and receives a variable rate.

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