University of Alabama Sells $218.9 Million of Bonds For New Construction Projects

By Patrick Sheridan

The University of Alabama has sold $218.9 million in municipal bonds to help finance the building and renovation of campus facilities.

The school's General Revenue Bonds, Series 2024-B, have maturities ranging from 2025 to 2054. Bonds maturing in 2035 have an interest rate of 5% and a yield of 2.8%. Term bonds maturing in 2050 have an interest rate of 4% and a yield of 4.126%. The term bonds maturing in 2054 have an interest rate of 4% and a yield of 4.177%, according to a filing Thursday on MuniOS.

The bonds are secured by a pledge of revenue from the university and are expected to be available for delivery on or about Sept. 26.

Proceeds will be used for the construction and equipping of a new, 130,000-square-foot performing arts academic center. The university will also use funds for renovations and construction needed to relocate its Department of Psychology. Additionally, proceeds will go to construction of a new Student Health and Wellness Building.

The university will also build a new 49,000-square-foot practice and player development facility in the southeast quadrant of Coleman Coliseum, for the unviversity's men's and women's basketball teams.

Money from the sale will also be used to pay issuance costs.

The University of Alabama, founded in 1831, is the state's oldest and largest public university, and set an enrollment record of 39,623 students in the fall of 2023.

S&P Global Ratings assigned an AA rating to the bonds and Moody's Investors Service rated the bonds Aa2.

BofA Securities is lead manager on the bond sale.

Write to Patrick Sheridan at patrick.sheridan@wsj.com

(END) Dow Jones Newswires

September 20, 2024 14:02 ET (18:02 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.