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University of Richmond Secures Over $100M in Tax-Exempt Bonds; Borrowing Reflects UR’s Financial Stability

Bonds Were Highly Sought After by More Than 35 Unique Investors

March 19, 2024

UNIVERSITY OF RICHMOND ─ The University of Richmond has secured $100,545,000 million in tax-exempt bonds for capital projects. The bonds — issued through the Virginia College Building Authority — went to market in late February, were highly sought after by investors, and outperformed expectations.

Bank of America served as the senior manager of the bond transaction, with Davenport & Company LLC, a Richmond-based firm, and US Bancorp, serving as co-managers. More than 35 unique investors, including individuals, brokers, money managers, and institutions, placed orders for the bonds, which were oversubscribed by 360%. The high demand allowed UR to achieve competitive pricing and negotiate a lower than anticipated financing cost for the transaction.

“Investing in our facilities and infrastructure is a critical component of supporting our educational mission,” said David Hale, executive vice president and chief operating officer. “The positive outcome of this bond sale reflects the University’s strong financial condition as a result of excellent operating results, incredible philanthropic support for the University over many generations and appropriate stewardship of our financial resources.”

UR requested and received approval for the 30-year borrowing from the Virginia College Building Authority for two initiatives — 1) funding for several capital projects; and 2) refinancing a prior tax-exempt bond issuance from 2012. VCBA provides a conduit financing mechanism for private, non-profit institutions of higher education in Virginia.

The new funding projects currently underway on campus include the renovation and expansion of Boatwright Memorial Library; upgrading the campus central steam plant; and renovating the North Court academic building into a student residence hall.