Transaction Details

Aurora University

Municipal

Lead Bookrunner

Baird served as the sole underwriter on the University’s $26,245,000 Adjustable Rate Demand Economic Development Revenue Refunding Bonds, Aurora University, Series 2019 and $15,245,000 Adjustable Rate Demand Economic Development Revenue Refunding Bonds, Aurora University, Series 2020 which were rated “A2”/”VMIG 1”.

Baird served as sole underwriter on Aurora University’s first bond financing in over 15 years. The Bonds were issued to refund the University’s Series 2004 Bonds, refinance certain taxable debt, and finance the costs of certain educational, athletic and administrative facilities with related infrastructure of the University. The project included a multi-level parking facility, library/student union, residence hall and a facility for student and alumni academic and career support functions.

Baird priced the 2019 Bonds and 2020 Bonds at the SIFMA Index. The interest rate adjusts weekly and the 2019 Bonds and 2020 Bonds are subject to optional redemption at any time. Over 80 different retail accounts purchased the University’s bonds totaling approximately $23 million. The smallest retail order was $10,000 and the largest was $3 million.

BMO Harris Bank provided an irrevocable direct-pay letter of credit to secure payment of principal and interest for the 2019 Bonds and 2020 Bonds. The refinancing achieved the following goals of the University: eliminated the University’s existing bullet payments and reset risk, created an overall level debt service structure for budgeting certainty, capitalized on the short-end of the yield curve for long-term debt, ensured maximum prepayment flexibility for the University, and preserved the ability to synthetically fix rates using short-term swaps.

Overall, the financing generated $15 million in project funds for the University.