The Minnesota Higher Education Facilities Authority has issued $22,845,000 in Series Eight-N bonds on behalf of St. Olaf College, refinancing existing long-term debt to realize savings made possible by the current low interest rate environment.
It is projected that the college will save about $2 million a year with the reduced interest on these bonds. St. Olaf intends to direct a lion’s share of these savings to its ongoing commitment to funding capital renewal on campus.
As a prerequisite of the sale, Moody’s Investors Service reviewed the college’s operations and outlook and affirmed St. Olaf’s A1 rating with a stable outlook.
All of the bond maturities were fully subscribed within seven minutes of being open to the market, reflecting both the attractive terms of the bonds and the strength of the college’s financial position.