By Patrick Sheridan
Arizona State University is poised to receive $154.3 million from the sale of municipal bonds to help fund infrastructure projects across its campuses in the Phoenix area.
The Series C Variable Rate Demand System Revenue Bonds will be sold on the university’s behalf by the Arizona Board of Regents, according to the roadshow document posted Monday on MuniOS.
Pricing is scheduled for May 21 and closing on May 22.
Interest on the bonds will be payable starting on July 1, and the first business day of each month thereafter. The securities mature from 2035 to 2055.
The securities are payable from and secured solely by a pledge of, and first lien on, gross revenues of the university.
Proceeds from the sale will be used to construct a 180,000 gross square foot multi-level research and education facility and build an underground thermal energy storage facility at the Polytechnic campus. Monies will also be used to construct a 20,000 square-foot utility plant and also build a new 4,000 gross square foot power distribution center on the Tempe campus. Proceeds will also be used to pay the costs of bond issuance.
Arizona State is one of the fastest-growing research institutions in the U.S., with its expenditures more than doubling in the past 10 years, according to the roadshow document.
Total enrollment was 152,864 students in the 2024 fall semester, according to the roadshow document. That included 71,965 students in degree programs offered completely online, making the university on of the largest institutions of higher learning in the U.S.
S&P Global Ratings and Moody’s Ratings assigned short-term ratings of A-1+ and VMIG 1, and long-term ratings of Aa2 and AA, to the debt.
BofA Securities is the lead manager on the deal.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
May 13, 2025 17:40 ET (21:40 GMT)
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