Education

On November 1, 2022, KBCM served as Sole Manager for $6.5 million of Tax-Exempt Revenue Bonds, Series 2022A (the “2022A Bonds”) and $2.8 million Taxable Revenue Bonds (the “2022B Bonds” and together with the 2022A Bonds, the “2022 Bonds”), for the City of Albany Capital Resource Corporation on behalf of the Albany College of Pharmacy and Health Sciences (the “College”). The 2022 Bonds were issued to (a) refund the City of Albany Industrial Development Agency’s (i) Civic Facility Revenue Bonds (CHF-Holland Suites, LLC Project), Series 2007A (the “2007A Bonds") and (ii) Civic Facility Revenue Bonds (CHF-Holland Suites II, LLC Project), Series 2008A (the “2008A Bonds” and together with the 2007A Bonds, the “Prior Bonds”), (b) finance costs to refund the Prior Bonds, and (c) pay costs of issuance. The Prior Bonds financed the leases and improvements to two student housing facilities (301 beds) and parking areas on the College’s campus by CHF-Holland Suites LLC and CHF-Holland Suites II LLC.

Founded in 1881, the College is a private, independent institution with a long tradition of academic and research excellence. The College’s mission is to educate the next generation of leaders to improve the health of our society. To date, the College has graduated more than 16,414 students in the increasingly complex profession of pharmacy and related fields.

KeyBanc Capital Markets (KBCM) served as served as Sole Manager for $118.1 million of Tax-Exempt Educational Facilities Revenue Bonds, Series 2022A (the "2022A Bonds") and $8.8 million of Federally Taxable Educational Facilities Revenue Bonds (the "2022B Bonds", collectively with the 2022A Bonds, the "2022 Bonds"), on behalf of DePauw University (the University). The 2022 Bonds were issued for the purposes of the current refunding of multiple variable rate demand and bank direct purchase bonds issued through the Indiana Finance Authority, including (a) Series 2008A; (b) Series 2014; (c) Series 2015; and (d) Series 2018; (ii) the payment in full of all swap termination fees associated with interest rate swap agreements incurred in 2002, 2006, and 2018; and (iii) the payment of certain costs associated with the issuance of the Series 2022 Bonds.

Following a period of operating pressures exacerbated by the COVID-19 pandemic, the University elected to restructure its debt portfolio with a fixed rate, overall level debt service structure. The restructuring will provide the University with budget certainty and cash flow relief for operations as it embarks on a new strategic plan and capital campaign. Via the refinancing, the University eliminated covenants, renewal, acceleration, and interest rate risks inherent to the direct purchase and variable rate structures. Additionally, by terminating the swaps, the University de-risked its debt portfolio further by eliminating counterparty, basis, and LIBOR transition risks.

Despite challenging market conditions brought about by municipal bond fund outflows, inflationary pressures and interest rate volatility, the University’s transaction successfully priced with the University achieving 30-year fixed rate committed funding in advance of a broad sell-off in both equity and fixed income markets.

KeyBanc Capital Markets (KBCM) served as Sole Manager for $6.9 million of Tax-Exempt Economic Development Revenue Refunding Bonds, Series 2022 (the 2022 Bonds) for the City of Mount Vernon, Ohio on behalf of Mount Vernon Nazarene University (the University). The 2022 Bonds were issued for the purposes of (i) refunding the outstanding amount of the City of Mount Vernon, Ohio Economic Development Revenue Refunding Bonds, Series 2016 (Mount Vernon Nazarene University) (the Prior Bonds); and (ii) paying costs of issuance of the 2022 Bonds.

KBCM worked with the University to solicit a first-time “BBB+” rating from S&P Global. By refunding the Prior Bonds, the University secured 30-year committed funding while also generating significant cash flow relief over the life of the Prior Bonds. Additionally, the University eliminated renewal and acceleration risks inherent to the existing direct purchase structure. The 2022 Bonds represent the only long-term indebtedness of the University.

Despite ongoing market volatility in the first weeks of 2022 as well as heightened geopolitical pressures on the day of pricing, the University’s transaction was well-received by investors. Additionally, in spite of being a somewhat smaller transaction, the pricing of the 2022 Bonds outpriced a larger competing transaction with the same credit rating that came to market the same day. Ultimately, KBCM built an order book with close to 2.0x oversubscription.

KeyBanc Capital Markets (“KBCM”) served as Senior Manager for $105.6 million of Tax-Exempt Higher Educational Facility Revenue Bonds (the “2022 Bonds”), for the State of Ohio – Ohio Higher Educational Facilities Commission (the “Commission”) on behalf of John Carroll University (the “University”). The 2022 Bonds were issued for the purposes of (i) (a) constructing and equipping a field house for University athletic, academic, administrative and other purposes, including parking facilities, (b) renovating student residence and library facilities and renovating and improving University facilities for various purposes, (ii) refunding the Higher Educational Facility Revenue Bonds (John Carroll University 2018 Project) (the “Refunded Bonds”), (iii) funding capitalized interest, and (iv) paying costs of issuance.

Under new leadership, the University identified several key capital projects that will help drive demand and student outcomes for years to come. Through the issuance of the 2022 Bonds, the University was able to take advantage of a relatively flat yield curve environment and finance these projects. By restructuring the Refunded Bonds, the University eliminated renewal and acceleration risks inherent to the existing direct purchase structure.

Despite challenging market conditions brought about by inflationary pressures, the University’s transaction was well-received by investors. Ultimately, the sale of the 2022 Bonds outperformed other competing transactions in the market.

KeyBanc Capital Markets (“KBCM”) served as Sole Manager for $39.2 Million of Tax-Exempt Revenue and Refunding Bonds, Series 2021 (the “2021 Bonds”) on behalf of George Fox University (the “University”). The 2021 Bonds were issued for the purposes of: (i) refinancing the University’s (a) Series 2012A Bonds, outstanding in the amount of $19.5 million (the “2012A Bonds”), (b) Series 2018 Bonds, outstanding in the amount of $12.0 million (the “2018 Bonds”), and (c) a term loan facility, outstanding in the amount of $2.7 million (the “Term Loan”) (collectively, the “Bank Facilities”); (ii) financing the termination of integrated interest rate swap agreements; (iii) funding improvements to the University’s campus; and (iv) paying issuance costs.

Through the issuance of the 2021 Bonds, the University’s first public market fixed rate issuance, KBCM was able to restructure the University’s frontloaded debt repayment schedule in order to achieve level annual payments over 30 years, generating near-term cash flow relief and eliminating ongoing risks associated with the University’s bank credit facilities. Due to the strong credit quality of the University and first time credit rating of “A-” by Standard & Poor’s, the transaction was structured without additional security enhancements like a mortgage or debt service reserve fund. Additionally, the transaction does not include any ongoing financial maintenance covenants and does not limit additional parity long- or short-term debt.

On September 23, 2021, KeyBanc Capital Markets (“KBCM”) closed $42.5 million of Tax-Exempt Revenue Bonds, Series 2021 (the “2021 Bonds”), for the Allegheny County Industrial Development Authority on behalf of Pittsburgh Technical College (the “College”). The 2021 Bonds were issued for the purposes of: (i) currently refunding the outstanding Allegheny County Industrial Development Authority, Tax-Exempt Revenue Note, Series 2017 (Center for Excellence in Education Project) (the “2017 Note”); (ii) funding a debt service fund; (iii) terminating an interest rate swap in connection with the 2017 Note; and (iv) paying issuance costs. KBCM served as Sole Manager for the 2021 Bonds.

Through a limited offering process conducted by KBCM and the issuance of the 2021 Bonds, the College restructured its long-term debt with a 29-year level annual debt service structure which generates cash flow relief for the College. With favorable MMD to Treasury rate ratios, the College was able to terminate its swap at a relatively lower cost given higher treasury rates versus their funding cost based off MMD. By locking in long-term financing in a historically low interest rate environment the College was able to eliminate interest rate, credit renewal, and other risks inherent in its prior bank debt structure.

Pittsburgh Technical College, located on a 180-acre campus in southwestern Pennsylvania, is a college with the primary focus of offering Associate degrees, but also offers a limited number of Bachelors’ degrees and certificates. The campus contains student housing, a six-floor education building, and a comprehensive Energy Technology Center. Formerly known as Pittsburgh Technical Institute, in July 2017 it began operating under the name Pittsburgh Technical College. The College operates a private coeducational institution located in Oakdale, Pennsylvania. Average headcount enrollment for FY 2019 was 1,431, which increased to 1,518 students for FY 2020.

On December 23, 2020, KeyBanc Capital Markets closed $250.0 million of Revenue Bonds, consisting of $150.8 million Series 2020A Bonds (Tax-Exempt) and $99.2 million Series 2020B Bonds (Taxable) (collectively the “2020 Bonds”), for the Dutchess County Local Development Corporation (the “Issuer”) on behalf of Bard College (the “College”). The 2020 Bonds were issued for the purposes of: (i) refinancing certain debt facilities of the College; (ii) financing the acquisition, construction, renovation, upgrading, equipping, and improving certain other main campus facilities; (iii) funding debt service reserve funds; and (iv) paying issuance costs. KBCM served as Senior Manager for the 2020 Bonds.

Bard College is a selective liberal arts school, 90 miles north of New York City, on 1,000 acres in the Hudson Valley of New York. Founded in 1860, the College serves roughly 2,000 students at its main campus and over 6,500 degree candidates globally. Bard has five dimensions, each of which supports the others: the undergraduate program, graduate education, the arts, international education, and the reform of secondary education. Bard’s expanding system of programs, partnerships, and centers of scholarship reflects this broader mission, and provides new opportunities for student engagement with critical global issues and with leading scholars, artists, and experts in an array of fields.

On September 24, 2020, KeyBanc Capital Markets (“KBCM”) priced $55.6 million of Revenue and Refunding Bonds for Yamhill County, Oregon (the “Issuer”) on behalf of Linfield University (the “University” or “Linfield”). The 2020 Bonds were issued for the purposes of: (i) currently refunding the University’s Oregon Facilities Authority 2010 Series A Revenue Bonds; (ii) advance refunding the University’s Oregon Facilities Authority 2015 Series A Revenue Bonds; (iii) financing the planning, construction and reimbursement of the new W.M. Keck Science Building, expanding and renovating Graf Hall, renovating parts of Murdock Hall, and funding a variety of other general campus improvements; (iv) funding debt service reserve funds; and, (v) paying issuance costs.

On March 2, 2020, KeyBanc Capital Markets ("KBCM") closed $51.990 million Revenue and Refunding Revenue Bonds (Seattle Pacific University Project), Series 2020A and $25.425 million Taxable Revenue Bonds, Series 2020B (collectively the “2020 Bonds”). KBCM served as sole manager for the 2020 Bonds.