Massachusetts State College Building Authority Sells Project and Refunding Revenue Bonds, Series 2022A
On February 2, 2022, the Massachusetts State College Building Authority (MSCBA) priced its Project and Refunding Revenue Bonds, Series 2022A. The transaction consisted of both a new money and refunding component across seven of the Authority’s nine State University campuses.
Jefferies LLC served as the senior manager on the MSCBA’s $107,155,000 transaction. Ramirez & Co, Inc, a Minority Business Enterprise (“MBE”) and Raymond James & Associates, Inc served as co-senior managers while Blaylock Van, LLC, a Minority Business Enterprise (“MBE”), and Mischler Financial Group, Inc, a Veteran’s Business Enterprise (“VBE”) served as co-managers. Acacia Financial Group, Inc., a certified Women’s Business Enterprise by the Women’s Business Enterprise Council, served as the Financial Advisor. Hinckley, Allen & Snyder, LLP served as bond counsel. The transaction closed on February 15, 2022.
This collaboration of public and private sector partners produced a true interest cost of 2.67% over thirty years on the new money component which included the campuses of Massachusetts Maritime Academy and Westfield State University. The refunding component refinanced the Authority’s outstanding callable 2012C Project Revenue Bonds and produced just over $6 million in present value savings or 5.4% of bonds refunded. The savings will benefit the campuses of Bridgewater State University, Fitchburg State University, Framingham State University, Massachusetts College of Liberal Arts, Massachusetts Maritime Academy, Westfield State University and Worcester State University.
The Massachusetts State College Building Authority issued the bonds on a Tax-Exempt basis. The transaction was met with strong demand from investors and resulted in an all in TIC of 2.34%. The bonds were placed with 42 unique investors, 34 of which were new investors for the MSCBA.
The MSCBA finances, plans, designs, constructs and oversees the management of residence halls and student activity facilities on the nine State University campuses. The State University housing, dining, parking, athletic and campus center facility projects developed by the Authority serve 40,000 students, once third of whom live in campus housing. In addition, the MSCBA is authorized to fund and implement projects for the fifteen Community Colleges.