Anderson University will be entering a financing arrangement that affects both existing and new debt of approximately $45 million in the form of a tax exempt bond issuance. The university expects to complete the issuance by the end of the 2006. In preparation, Anderson has selected Core Capital Group to serve as its financial advisor for the project. Core Capital Group is a financial advisory firm located in Indianapolis specializing in both taxable and tax exempt bond issuances.
Following a lengthy interview process conducted by members of Anderson University and Core Capital Group, City Securities was selected to serve as the university’s investment bank for the project. City Securities, also located in Indianapolis, has extensive experience working with tax exempt financing mechanisms, particularly tax exempt bond issuances for institutions located in the state of Indiana. Anderson University will use Baker & Daniels as legal counsel.
The new bond issuance will be used to refinance two existing bond issuances as well as to provide new financing that will supply capital for future construction projects by the university. Approximately $21 million of the financing will be utilized by Anderson University for construction and improvements. Approximately $7.5 million will be used for the new construction of the Education Center connected to the Flagship Enterprise Center while approximately $15.5 million will be used for the renovation of selected university housing.
The remaining amount of the bond issuance will be used to refinance existing debt from projects that were financed in the past. The existing debt includes bonds that were issued in both 1998 and 2001. This new bond issuance will refinance the existing bonds and will result in a lower annual debt service than the university is currently paying.
Anderson University is a private, four-year, Christian liberal arts institution of approximately 2,800 undergraduate and graduate students. Established in 1917 by the Church of God, the university offers more than 60 undergraduate majors and graduate programs in business, education, nursing and theology.
