LOS ANGELES - Saint Martin's University will complete construction of a science hall and industrial lab with the proceeds from a $33.5 million of debt issued through the Washington Higher Education Facilities Authority.
The bonds were issued in a private placement with U.S. Bank, which closed on April 24, according to Carol Johnson, a manager at the authority.
WHEFA helps Washington's nonprofit, independent colleges and universities finance construction an improvements to their facilities through tax-exempt financing.
The bonds are expected to finance up to $4 million of the construction costs for the science hall and industrial lab at the university, located in Lacey, Wash.
The projects are part of a new engineering building that recently opened at the university. Groundbreaking for the 15,000-square foot lab building is scheduled to start in September, with completion expected by June 2015.
The 17,000 square-foot science building is planned to break ground in the spring of 2016, with completion in the summer of 2017.
The rest of the funding for the new buildings will come from a fundraising campaign.
"This transaction is extremely important to the university," said Roy Heynderickx, president of Saint Martin's and a WHEFA board member. "The additional funds generated by the bonds, along with university fundraising, will strengthen the university's finances and provide growth in important [Science, Technology, Engineering and Math] programs for the state of Washington."
Since Heynderickx is a WHEFA board member, he recused himself from the vote on this matter. The board approved the bond issuance on March 28.
Other proceeds from the bonds will refinance previous bonds issued for the university by WHEFA in 2007, which will save millions of dollars in interest payments.
"The addition of the new buildings and the opportunity to refinance existing debt at lower rates will strengthen the university's balance sheet, bring in new students and really transform the university," said Susan Heltsley, vice present of finance and chief financial officer at Saint Martin.
Saint Martin's is an independent Catholic university, with over 1,400 undergraduate students and 350 graduate students.
