State Treasurer Curtis Loftis announced that on June 15, 2021, his office assisted the University of South Carolina with the issuance of $180,045,000 (par) in Higher Education Revenue Bonds, Series 2021A and 2021B, for a total production amount of $228,187,783.63.
These bonds were issued to secure financing for the University of South Carolina’s Campus Village project, which encompasses the redevelopment of nine acres to include the demolition of the Cliff Apartments. The university will also build five new structures, with housing for up to 1,800, shell spaces for a dining facility, a transportation hub, and other student support spaces as part of the total project.
According to Treasurer Loftis, the successful transaction can be attributed to the historically low interest rate environment, which resulted in an exceptional borrowing rate for the university. The Series 2021A and 2021B bonds were sold by Barclays in a negotiated sale at an all-in true interest cost of 2.75%. This all-in rate was 89 basis points lower than the projected all-in rate of 3.64% that was projected when the deal was approved by the State Fiscal Accountability Authority (SFAA) in October of 2019.
Prior to the bond sale, the University of South Carolina’s Aa2 and AA credit ratings on revenue-backed bonds were affirmed by Moody’s Investors Service and Fitch, respectively.
For more information on the S.C. Treasurer’s Office, please visit treasurer.sc.gov.