The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, Tennessee, sold $319.7 million in bonds to finance upgrades at Vanderbilt University.
The bonds mature between 2034 and 2054, yielding between 2.99% and 4.19%. They received a rating of Aa1 from Moody’s Investors Service and AAA from S&P Global Ratings.
The rating “acknowledges the university’s significant wealth, strong student demand, ongoing donor support, and sponsored research prowess which continue to support its excellent strategic positioning,” Moody’s analysts wrote.
The board will loan the bond proceeds to Vanderbilt, which will use them to fund construction and renovation of campus buildings and other initiatives.
The board will also use the issuance proceeds to refund commercial paper notes that it has sold on behalf of Vanderbilt.
Vanderbilt is a highly selective private university in Nashville and one of the most expensive institutions of higher education in the United States. The school charged almost $85,000 for tuition, fees, and room and board last academic year.
The bonds are limited obligations of the board and unsecured general obligations of Vanderbilt, backed by its full faith and credit.
RBC Capital Markets LLC served as lead underwriter on the issuance, purchasing the bonds for $351 million. The price reflected a premium of almost $32 million. Kaufman, Hall & Associates, LLC acted as financial advisor.