On July 13, 2021, the Massachusetts State College Building Authority (MSCBA) received competitive bids on two series of new money bonds and achieved the lowest cost of funds in its history. Acacia Financial Group, Inc., a certified Women’s Business Enterprise by the Women’s Business Enterprise Council, served as the Financial Advisor. Hinckley, Allen & Snyder, LLP served as bond counsel. Both series have a scheduled closing date of July 22, 2021.
BofA Securities was the winning bidder for the Series 2021A (Green Bonds) Project Revenue Bonds (the “Series 2021A Bonds”) with the lowest True Interest Cost (“TIC”) of 2.02%. The Series 2021A Bonds will fund new capacity housing for the Massachusetts Maritime Academy. Twelve bids were received for this series with TICs ranging from 2.02% to 2.32%. The final par amount of this series is $16,825,000, which when combined with bond premium, will generate a $17,000,000 project fund deposit. The final maturity date is May 1, 2051, and there is an optional redemption on or after May 1, 2030 at 100% of par.
Raymond James was the winning bidder for the Series 2021B Project Revenue Bonds (the “Series 2021B Bonds”) with the lowest True Interest Cost (“TIC”) of 1.72%. The Series 2021B Bonds will fund renovations to Company 1 residence hall for the Massachusetts Maritime Academy and the Amsler Student Center at the Massachusetts College of Liberal Arts. Five bids were received for this series with TICs ranging from 1.72% to 2.04%. The final par amount of this series is $2,265,000, which when combined with bond premium, will generate a $2,500,000 project fund deposit. The final maturity May 1, 2041, and there is an optional redemption on or after May 1, 2030 at 100% of par.
The MSCBA finances, plans, designs, constructs, and oversees the management of residence halls and student activity facilities on the nine State University campuses. The State University housing, dining, parking, athletic and campus center facility projects developed by the Authority serve 40,000 students, one third of whom live in campus housing. In addition, the MSCBA is authorized to fund and implement projects for the fifteen Community Colleges.
