University of Findlay Issues $40 Million Ohio Higher Education Revenue Bonds to Secure Financial Future
Findlay, Ohio – The University of Findlay announced its first public bond issuance of $39,370,000 in Ohio Higher Educational Revenue Bonds that were issued through the Ohio Higher Educational Facility Commission. The proceeds will primarily be used to refinance outstanding obligations of the University and is a significant move to provide a longterm, secure source of financing for the University.
The University completed the successful sale of $39.4 million of the bonds that enabled the University to restructure its current capital debt resulting in both cash savings and a mitigation of future financial risks. The bonds were structured to allow for level debt service over the next 20 years starting in 2025.
“This is a significant step forward for the University of Findlay as we continue executing our plan for growth and increased regional distinction” stated Thomas Lause, the University’s vice president for business affairs, chief financial officer and treasurer. “Previously the University’s $40 million debt was very biased toward short term debt with variable interest rates and having an excess concentration with one financial institution. Moving the University’s debt to a public bond financing mitigates those risks, enabling the University of Findlay to have long-term, fixed rate, very secure financing. This was a tremendously successful transaction and we are especially appreciative of the guidance provided by our business partner, KeyBank Capital Markets.”
The University, which received an Investment Grade rating with a Stable Outlook from Standard and Poor’s on Feb. 8, 2019, has seen overall operating success credited to careful expense management and a commitment to controlling costs. Despite a recent decrease in international student enrollment, the University’s domestic student enrollment continues to be strong thanks to a diverse offering of in-demand programs including pre-veterinary medicine, environmental/health & safety, health professions, business, and computer science.
“The value of a Findlay education is evident in every community our alumni are a part of. We focus on preparing market-ready graduates who are ready to lead and serve,” said Dr. Katherine Fell, president of the University. “This new debt structure places the University in a strong strategic position to reach our future goals and continue to fulfill our mission of preparing students for meaningful lives and productive careers.”
KeyBank Capital Markets Inc. was the lead underwriter on the bond issuance, and PNC Capital Markets LLC was the co-manager.