The University of Connecticut on Tuesday issued $88 million of UConn2000 Series 2012A special obligation student fee revenue refunding bonds, with an all-in true interest cost of 2.48%.
Jefferies & Co. was senior underwriter.
The university refunded $106 million of its debt, according to John Sullivan, manager of treasury services. The school conducted the transaction in conjunction with the state’s Treasury Department.
Sullivan said the school saved $31.8 million in nominal dollars and net present value savings were $26.7 million,
“It was a great sale,” he said. “This refunding will save the university substantial sums of money at a time when the national economy is not doing so well.”
It was the sixth series of special obligation bonds issued under the UConn 2000 Infrastructure Improvement Program, designed for building improvements.
Pullman & Comley LLC was bond counsel and the Law Offices of Joseph C. Reid PA was co-bond counsel. Hawkins Delafield & Wood LLP and Lewis & Munday PC represented the underwriters.
Moody’s Investors Service rated the bonds Aa2. Previously, Standard & Poor’s rated them AA-minus.