University planning bond issue
Stanford has applied to the state of California for permission to issue $300 million in tax-exempt bonds to refinance some existing debt and to finance numerous capital projects.
The campus expects to receive the authorization from the California Educational Facilities Authority (CEFA) by March 17, and then expects to issue the bonds within the month.
The application to CEFA also asks for authorization to refinance, over a five-year period, as much as $918 million of currently outstanding tax-exempt debt.
The multi-year authorization will provide the university the flexibility to trigger a refinancing if market conditions are favorable, said university Treasurer Odile Disch-Bhadkamkar. "This is a routine process for us, as the university always seeks the best market conditions for our debt offerings."
Capital facilities at Stanford are typically financed with a mix of gifts, financial reserves and debt.
The facilities being financed through $150 million of the tax-exempt bonds include the Knight Management Center, the Center for Nanoscale Science and Technology, the William H. Neukom Building at the Law School, the Lorry I. Lokey Stem Cell Research Building and the Li Ka Shing Center for Learning and Knowledge, as well as renovations in residential and dining services and infrastructure projects.