Case Study:Goucher College

1021 Dulaney Valley Rd, Baltimore, MD 21204

Founded in 1885, Goucher College is an independent, coeducational liberal arts institution located on 287 wooded acres just north of the City of Baltimore in Towson, Maryland. The College offers more than 900 courses leading to a Bachelor of Arts degree in 33 majors and 42 minors in addition to its graduate program offered through its Welch Center for Graduate and Professional Studies. At the time of its financing in 2017, the College enrolled approximately 2,200 undergraduate and graduate students, employed 129 full-time faculty and 28 part-time lecturers and approximately 348 full and part-time non-faculty staff members.

Project Overview

Wye River Group served as financial advisor to Goucher with respect to the public offering of its Series 2017A revenue bonds totaling approximately $57.6 million by the Maryland Health and Higher Educational Facilities Authority on behalf of the College. The proceeds of the Series 2017A Bonds financed the current refunding of the College’s outstanding Series 2012B and 2012C Bonds as well as costs associated with the bond issuance. The $30 million Series 2017B Bonds were issued through a direct bank purchase with the proceeds loaned to the college to fund the costs associated with certain improvements to campus facilities. To secure a synthetic fixed rate for the Series 2017B Bonds, Wye River Group designed a restructuring of an existing interest rate swap on the College’s balance sheet to hedge the Series 2017B Bonds and avoid an otherwise high termination cost.

Wye River Group’s Role

Wye River had the privilege to work closely with the College on its financing. More specifically, our services included:

  • Review of plan of finance alternatives
  • Selection its preferred financing structure
  • Conducting competitive solicitations of underwriters and commercial banks to secure the best possible terms for each series of bonds
  • Restructuring the College’s existing interest rate swap
  • Assisting in the development and execution of a rating agency strategy which enabled the College to retain its “A-“ credit rating from Standard and Poor’s Corporation

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