State Treasurer Curtis Loftis announced that his office recently facilitated transactions for Coastal Carolina University and the University of South Carolina issuing $129,445,000 (par) in Higher Education Refunding Revenue Bonds and Athletic Facilities Revenue Bonds, resulting in a cumulative $19.2 million in Net Present Value (NPV) savings for the state universities.
“I am pleased that we were able to take advantage of the low interest rate environment to secure these favorable terms for both universities. Each had exceptional days in the market, and the results were much better than originally projected,” said Treasurer Loftis.
On March 9, 2022, Coastal Carolina University closed on $38,810,000 Higher Education Refunding Revenue Bonds, Series 2022 bonds, refunding Series 2013. The refunding transaction generated over $3.6 million in NPV savings.
Then on March 10, 2022, the University of South Carolina bonds closed, refunding five series of bonds and raising funds for Williams-Brice Stadium renovations:
- $39,805,000 University of South Carolina Special Higher Education Refunding Revenue Bonds, Series 2022A issued to refund Series 2012A, generating $9.1 million in NPV savings;
- $14,140,000 University of South Carolina Higher Education Refunding Revenue Bonds, Series 2022A issued to refund Series 2012B, generating $2.9 million in NPV savings; and
- $36,690,000 University of South Carolina Athletic Facilities Revenue Bonds, Series 2022A issued to refund portions of Series 2010A, 2012A, and 2012B, generating a combined NPV savings of $3.6 million and raising $22 million for renovations to Williams-Brice Stadium.
The Coastal bonds were sold to Citigroup on a competitive basis yielding a True Interest Cost of 2.27%. The USC transactions were negotiated sales with Barclays with True Interest Costs of 2.10%, 2.03% and 3.02%, respectively.
For more information on the S.C. Treasurer’s Office, please visit treasurer.sc.gov.