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MassDevelopment In The News
Brandeis University's $65 Million Deal Leads MassDevelopment's Bond Plan
February 14, 2007: The Bond Buyer, by Michelle Kaske
The Massachusetts Development Finance Agency last week approved $94 million of public and private debt deals, with Brandeis University topping the list of borrowers with a sale of up to $65 million of new-money bonds.
MassDevelopment anticipates selling the debt for Brandeis at the end of the month. The transaction is the initial financing phase of an overall $136.2 million expansion project at the university that includes new science buildings, a residence hall, and a parking garage.
"They’re going to issue additional debt for the balance, plus they’re going to do a capital campaign for the science center," said Jami Loh, the authority’s first vice president of investment banking.
The school will complete a 90,000 square-foot facility before beginning another, 50,000 square-foot science building. The new apartment-style residence hall will offer 200 additional beds and the parking structure will accommodate 700 to 800 cars on three or four levels.
Lehman Brothers Inc. will price the variable-rate transaction and Edwards, Angell, Palmer & Dodge LLP is bond counsel. XL Capital Assurance Inc. will insure deal.
The sale will also include a forward floating to fixed swap transaction that the university entered into with Lehman Brothers as counterparty in January of 2006. Lehman will pay 67% of Libor while Brandeis will pay a fixed-rate of 3.777%, according to Christie Lombard Martin at Edwards Angell.
The university does not carry an unenhanced rating.
Brandeis is located in Waltham, nine miles west of Boston. It is a Jewish-sponsored, non-sectarian, liberal arts college with 3,300 undergraduates and 2,000 graduate students, according to the school’s Web site. Undergraduate tuition is $34,035 per year.
The authority also approved $5 million of commercial paper for the Planned Parenthood League of Massachusetts. The offering is expected by the end of the month and funds will be used to purchase and renovate a 10,000 square-foot building and add on an additional 1,000 to 3,000 feet of space. Planned Parenthood will use the new facility for medical procedures, office space and educational training.
Private sales include: $10 million for KSD Limited Partnership; $5.4 million for Covenant Christian Academy, a K-9 school in West Peabody; $4.8 million for North Shore Education Consortium, a Pre-K-12 grade school in Beverly; $3 million for Northeast Animal Shelter in Salem, and $850,000 for Montessori Children’s House of Middlesex.
Separately, the New Jersey Economic Development Authority authorized yesterday two fixed-rate bond sales totaling $5.2 million of long-term debt. The authority will issue up to $2.8 million on behalf of Perth Amboy Tire Inc., a tire dealership in Middlesex County with North Fork Bank as direct purchaser. Wolff & Samson PC is bond counsel. Bond proceeds will help finance acquisition of land and a building, renovations and equipment purchases.
The second sale is for the Original Bagel & Bialy Co., Inc. in Essex County for up to $2.35 million with Commerce Bank as direct purchaser. Wolff & Samson is bond counsel. The wholesale bakery anticipates hiring an additional 46 employees with the purchase of additional machinery that will enable the company to manufacture new products.
© Copyright 2007 The Bond Buyer.
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