$37 million bond offering announced
June 04, 2012
Augustana College will issue $37 million of double tax-exempt bonds beginning Monday, June 18, through the Quad Cities Regional Economic Development Authority.
Alumni, community residents and other interested investors will have the opportunity to purchase the bonds. The bonds are being issued to help pay for costs associated with the construction of the Center for Student Life, a 35,000-square-foot addition to the Thomas Tredway Library, as well as a renovation of the 39,000-square-foot library. Additionally, the college is refinancing bonds issued in 2003.
“This issuance provides us significant savings for the next 20 years by taking advantage of current market conditions to refinance a large portion of the college’s existing debt portfolio at favorable rates,” said David English, chief financial officer and vice president for finance and administration. “Additionally, this financing provides an opportunity to make significant improvements in campus infrastructure and the student experience.”
The bonds will have a rating of Baa1 from Moody’s Investor Services. The bonds will amortize over 20 years, from Oct. 1, 2013, through 2032, and will be sold in increments of $5,000. The bonds will be exempt from federal income taxes, and also state income taxes for Illinois residents. Investors interested in purchasing the bonds should contact their financial advisor.
The new Center for Student Life will house dining services and offices for student activities. Combining these services with the existing library addresses the evolving academic and social needs of today’s students.
Building on its roles as the hub of academic activity and a gathering place for students, the library was recognized by college leaders as the ideal place to locate critical student services. The total cost of the project is estimated at $20 million, of which approximately $13 million is expected to be funded through gifts and internally generated funds. Construction began in May, and it is expected to be done by August 2013.
Director of Public Relations