NEWS RELEASE: Pace University issues $115 Million in Bonds to Help Fund Capital Improvements

NEWS RELEASE: Pace University issues $115 Million in Bonds to Help Fund Capital Improvements

FOR IMMEDIATE RELEASE

Pace University issues $115 Million in Bonds to Help Fund Capital Improvements

NEW YORK, March 7 – Pace University announced today that it issued more than $115 million of fixed and variable rate bonds that will lower its debt service and pave the way for future growth.

The bond issue will refinance the University’s outstanding long-term debt and fund certain capital projects on the Pace campuses in Lower Manhattan and in Westchester County, NY. Pace issued nearly $96 million in tax-exempt (Series A) bonds and almost $20 million in taxable (Series B) bonds.

“We are very pleased with the market reception for our bond issue,” said Stephen J. Friedman, Pace’s president. “The interest in these bonds reflects confidence in the future of Pace University.”

On Feb. 27, the Dormitory Authority of the State of New York — which provides financial and material aid to the state’s public and private nonprofit universities — offered the Series A bonds.

Standard & Poor’s Financial Services, LLC, assigned a “BBB-” rating to the issuance. The Series A bonds were offered through an underwriting syndicate led by Bank of America Merrill Lynch. The bond issue closed today.

About Pace University: Since 1906, Pace has educated thinking professionals by providing high-quality education for the professions on a firm base of liberal learning amid the advantages of the New York metropolitan area. A private university, Pace has campuses in Lower Manhattan and Westchester County, N.Y., enrolling nearly 13,000 students in bachelor’s, master’s, and doctoral programs in its Dyson College of Arts and Sciences, Lubin School of Business, College of Health Professions, Seidenberg School of Computer Science and Information Systems,  School of Education, and School of Law.

Media contact:  Bill Caldwell, Pace, 212-346-1597, wcaldwell@pace.edu

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One Response to “NEWS RELEASE: Pace University issues $115 Million in Bonds to Help Fund Capital Improvements”

  1. Ghassan Karam 09. Mar, 2013 at 1:37 pm

    I am certain that the major thrust of the new issue is to take advantage of the current environment of lower interest rate. Congratulations for being in a position to take advantage of this opportunity.

    I imagine though, that practically all the newly raised funds will go to retire the older long term debt of about $110.00 The new issue raised about $115 million prior to the payment of expenses and certain fees that probably amounted to over a million dollars.

    If the above is anywhere close to accurate then not much if any is left to fund “fund certain capital projects on the Pace campuses in Lower Manhattan and in Westchester County, NY.”

    It would be beneficial to clarify that portion of the press release for the benefit of the Pace community.

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