The University of New Mexico has sold $125,575,000 in revenue bonds to finance a major campus building renovation and construction effort. The sale went better than regents and financial managers had initially anticipated with a final interest rate set at 4.5 percent.
The 30-year fixed rate bonds are being financed by an increase in student fees. Students agreed to support the fee increase with the stipulation that the projects would be used to improve the learning environment in classroom and campus buildings.
“This was a phenomenal success,” says UNM Executive Vice President for Administration David Harris. “We thank the financial community for supporting us. However, we could have even begun to pull this off without the support of our students. All of the projects that these bonds fund will improve our students’ learning environment.”
After underwriting and issuance expenses, UNM will have $125 million for use on actual projects.
The first projects to be financed by the bonds are the School of Architecture and Planning and the Centennial Engineering Center. UNM plans to issue Requests for Proposals for architectural and engineering services within the year for the balance of the projects, with the ultimate goal being to complete all of the proposed projects within three years.
The bond sale was featured on the cover of industry publication “The Bond Buyer” this week as its pick of the week. Moody’s bond rating service gave UNM an “As3” rating and Standard and Poor’s gave the university a “AA” rating.
Contact: Susan McKinsey, (505) 277-1989