St. Thomas University

Wye River Group served as St. Thomas University’s independent financial advisor for this transaction.

$50,500,000
Higher Educational Facilities Financing Authority (FL)
Revenue and Revenue Refunding Bonds, Series 2022
(St. Thomas University Project)
 
$10,000,000
Line of Credit

Introduction

St. Thomas was founded in 1961 as Biscayne College by the order of the Augustinian Friars. The college was accepted as a member of the Southern Association of Colleges and Schools and first accredited by the Commission on Colleges in 1968. Through continued growth and development, Biscayne College earned university status in 1984 after the addition of 10 master’s degree programs and the opening of the College of Law. The University came under the sponsorship of the Archdiocese of Miami in 1988, conferring upon St. Thomas the distinction of being the only Catholic Archdiocesan sponsored university in the State of Florida.

St. Thomas is located in Miami Gardens, Florida. Fall 2021 enrollment was over 5,900. The University has 24 Undergraduate Majors, 21 Graduate Majors, 7 Doctoral Programs and 1 Professional Program (Law) in four colleges: Gus Machado College of Business; College of Science, Technology, Engineering & Health; Biscayne College, and the College of Law. The University has 25 varsity teams as part of a robust and competitive Athletics department.

Project Overview

Proceeds of the Series 2022 Bond were used to:  1) refund the University’s tax-exempt Series 2009 Bond in the amount of $21.6 million; 2) refund the University’s taxable 2019 bank loan in the amount of $12 million; 3) exercise a purchase option related to a capital lease transaction for one of the University’s dormitories in the amount of $5.2 million; 4) finance new capital expenditures in the amount of $10.6 million; and 5) pay transaction costs associated with the issuance of the Series 2022 Bond.

Financing Overview

The Series 2022 Bond was structured as a fixed rate direct purchase bank loan with Truist Bank.  The final maturity of the bond is 25 years and the fixed rate is committed for 20 years. As part of the Plan of Finance, a new line of credit was put into place to replace the University’s existing line of credit.

In conjunction with the issuance of the Series 2022 Bond and the new line of credit, St. Thomas implemented a new master trust indenture that allows for efficient issuance of multiple forms of debt on a parity basis. Security for the new debt is a pledge of the gross operating revenues of the University.

The Series 2022 Bond and the new line of credit each closed successfully on April 13, 2022.

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