By Zaeem Shoaib
New York University said it will use about $2.13 billion from the sale of taxable and tax-exempt bonds to refund existing debt and pay for capital projects.
NYU will receive the money from the Dormitory Authority of the State of New York, which will sell the bonds on the university's behalf, according to documents posted Wednesday on MuniOS.
The deal may close as soon as June 5, and the bonds are expected to be delivered later that month.
The authority plans to issue $1.21 billion of tax-exempt New York University Revenue Bonds Series 2025 A, and $920.7 million of federally taxable New York University Revenue Bonds Series 2025 B.
The bonds are backed by payments made by the university under a loan agreement with the authority.
Proceeds from the Series A bonds will be used for the Series 2025 project, refund all or a portion of the authority's outstanding NYU Revenue Bonds Series 2015 A and retire commercial paper notes, according to the roadshow document. Money from the Series B debt will finance or refinance part of the costs of the Series 2025 project and pay issuance costs.
Interest on the bonds is payable semiannually starting on Jan. 1.
NYU is one of the largest private institutions of higher education in the U.S. It has about 29,700 undergraduate and 27,500 graduate and professional students, and includes 20 schools, colleges, institutes and programs in several major locations in the greater New York City area. The school received more than 120,000 applications for admission for the 2025-2026 school year, up from 85,600 for the 2020-2021 year.
Moody's has assigned a rating of Aa2 and S&P Global Ratings has assigned a rating of AA- to the bonds.
Wells Fargo Securities is the lead manager on sales of the Series A debt, and RBC Capital Markets is lead on the Series B securities.
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
May 22, 2025 18:57 ET (22:57 GMT)
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