Case Study:Maryland Institute College of Art

1300 W Mt Royal Ave, Baltimore, MD 21217

Maryland Institute College of Art (“MICA”) is located in the Bolton Hill neighborhood and adjacent arts district of the City of Baltimore, Maryland. The College was chartered in 1826 and is one of the nation’s oldest, independent, fully accredited, degree-granting colleges specializing in the visual arts. MICA offers 16 studio majors in the art and design disciplines. The College also offers 17 concentrations in a wide range of studio disciplines and 7 minors in areas of the liberal arts, in addition to a graduate program. At the time of its financings, the enrollment of the College totaled approximately 1,767 full-time and part-time undergraduates, 401 full-time and part-time graduate and post-baccalaureate students and 178 participating in the continuing studies programs; and employed 479 full-time, 552 part-time and 107 temporary faculty and staff members.

Project Overview

Wye River Group served as financial advisor to MICA with respect to the 2016 issuance of approximately $38 million and 2017 issuance of $17.6 million tax-exempt revenue bonds by the Maryland Health and Higher Educational Facilities Authority to refinance its outstanding Series 2006 and Series 2007 Bonds.

Financing Overview

The Series 2016 Bonds were issued for the purpose of advance refunding the Series 2006 Bonds and that portion of the Series 2007 Bonds eligible for advance refunding. The Series 2017 Bonds were sold at the same time as the Series 2016 Bonds however with a “forward delivery” scheduled for March 2017 to provide for a current refunding of those Series 2007 Bonds that were not eligible to be advance refunded. Both the Series 2016 Bonds and the Series 2017 Bonds received credit ratings of “BBB+” from Fitch and “Baa1” from Moody’s.

Wye River Group’s Role

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

  • Assessing refinancing alternatives with respect to MICA’s Series 2006 and 2007 Bonds
  • Estimating MICA’s capacity to take on additional debt
  • Analyzing the collective effect of a refinancing and new-money borrowing
  • Evaluating the credit rating consequences of a refinancing and possible new-money financing
  • Assisting in the selection of an underwriter for a negotiated bond offering
  • Developing a rating agency strategy and presentation materials

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