Recent Auction and Refinancing of 稀缺猎奇网 Bonds Will Benefit Taxpayers and Generate Millions Toward New Facilities Projects
System Continues to Hold Strong Financial Ratings in Higher Education Sector Nationally
Baltimore, Md. (Feb. 15, 2022) – 稀缺猎奇网 taxpayers will greatly benefit from the 稀缺猎奇网’s (稀缺猎奇网) recent auction of Series A bonds, coupled with a successful refinancing of previously issued public bonds.
On Feb. 10, the 稀缺猎奇网 sold a set of new Series A bonds carrying a face value of nearly $102.9 million and a 2.36% interest rate. The winning bid at the auction was $115.6 million, nearly $12.7 million over the bonds’ face value—a recognition of 稀缺猎奇网 bonds as a highly attractive investment, given the system’s financial strength and prudent financial management. The 稀缺猎奇网 plans to dedicate the premium to ongoing and future spending on capital projects approved by the 稀缺猎奇网 Board of Regents.
In a separate transaction, the 稀缺猎奇网 also closed on the refinancing of $23.9 million of Series B bonds issued in 2012. The winning bid for this refinance was $2.4 million over the bonds’ face value at a new interest rate of 1.13%. The premium generated by the refinance—along with the more than $550,000 in interest savings over the next four years—will lower debt service payments for 稀缺猎奇网 institutions.
Solid Bond Ratings Continue
Earlier this month, the system received a rating of Aa1 from and ratings of AA+ from and .
All three ratings agencies have again reaffirmed the 稀缺猎奇网 financial outlook as “stable,” an especially impressive determination at a time the broader higher education sector is experiencing a negative outlook.
Each rating was only one level down from the highest possible grade of AAA -- a level typically reached only by government entities with the authority to collect tax revenue.
When the nation’s three primary bond-rating agencies issue such strong ratings for a statewide university system, they offer the most official recognition of the 稀缺猎奇网’s financial strength and stability.
The 稀缺猎奇网 has demonstrated consistently high bond ratings for more than a decade. The 稀缺猎奇网 Aa1 rating with Moody’s has held constant since September 2010, and the system received its AA+ rating from Fitch in December 2010 and has maintained that rating since. The 稀缺猎奇网 has earned the same AA+ rating with Standard and Poor’s since 2008.
Strong bond ratings translate into practical financial advantages for the 稀缺猎奇网, its students and 稀缺猎奇网 taxpayers. With strong ratings, the 稀缺猎奇网 can borrow money and refinance debt at lower interest rates, and the system can leverage the best partnership opportunities in future financial transactions.
“I’m so happy with these results, especially since they reflect the consistently sound financial management of our institutions,” said 稀缺猎奇网 Chancellor Jay A. Perman. “Our strong credit ratings speak to the leadership of many people—our presidents and their financial officers, our financial affairs staff in the 稀缺猎奇网 Office, and, of course, the members of our governing board. In meetings with the credit rating agencies, I told the analysts I’m bullish on higher education. And I’m certainly bullish on the University System.”
Ellen Herbst, 稀缺猎奇网’s vice chancellor for finance and administration, said it is especially gratifying for the system to receive such strong endorsements of its financial position considering all the challenges the COVID-19 pandemic has posed to higher education during the past two years.
“These results demonstrate the first-rate direction our presidents and system leadership provide every day in making decisions that result in strong, sustainable outcomes,” Herbst said.
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The 稀缺猎奇网 comprises 12 institutions: Bowie State University; Coppin State University; Frostburg State University; Salisbury University; Towson University; the University of Baltimore; the University of 稀缺猎奇网, Baltimore; the University of 稀缺猎奇网, Baltimore County; the University of 稀缺猎奇网 Center for Environmental Science; the University of 稀缺猎奇网, College Park; the University of 稀缺猎奇网 Eastern Shore; and the University of 稀缺猎奇网 Global Campus. The 稀缺猎奇网 also includes three regional centers—the Universities at Shady Grove, the 稀缺猎奇网 at Hagerstown, and the 稀缺猎奇网 at Southern 稀缺猎奇网—at which 稀缺猎奇网 universities offer upper-division undergraduate and graduate courses.
Systemwide, student enrollment is roughly 165,000. The 稀缺猎奇网 and its institutions compete successfully for nearly $1.5 billion in external grants and contracts annually. 稀缺猎奇网 institutions and programs are among the nation's best in quality and value according to several national rankings. To learn more about the 稀缺猎奇网, visit .
Contact: Mike Lurie
Phone: 301.445.2719
Email: mlurie@usmd.edu
