Project Overview
Wye River Group served as financial advisor to Stevenson in 2013 for a complex, multi-series, multi-lender $147.7 million bond financing that refinanced the University’s outstanding variable rate demand bonds ($132.4 million) and outstanding taxable term loan ($4.7 million) into a new issue of tax-exempt “non-bank qualified” bonds; and, financed an additional $10 million of new on-campus capital projects.
Financing Overview
The financing enabled the University to (1) secure a fixed cost of capital for 10 years on all but $15.1 million of “new money” for capital projects (which the University elected to keep in a variable rate draw down mode), (2) refinance a taxable term loan, (3) extend the amortization of outstanding debt to 30 years, (4) reduce its annual debt service burden from $9.3 million to approximately $8.5 million, (5) consolidate and restructure existing interest rate swaps to provide a uniform hedge position, (6) eliminate overly-restrictive financial covenants, (7) permit parity financing of future capital projects, and (8) craft a Master Loan Agreement to provide the framework for, and basic financial covenants applicable to, all future debt financing of the University.
