Lehigh University Notice of Consideration of Potential Bond Issuance and Refinancing/Refunding Strategies
22 Mayo 2024 - 4:08PM
Business Wire
Lehigh University (the “University”) has announced that it is
currently evaluating the potential issuance of one or more series
of bonds (collectively, the “Bonds”) on or about July 2024.*
If issued, the University currently expects to use a portion of
the proceeds of the Bonds to fund new capital projects as well as
to potentially modify, refinance, purchase and/or refund certain
obligations of the University, including certain outstanding
tax-exempt and taxable indebtedness of the University, as set forth
below, but subject to change:
Northampton County General Purpose Authority:
University Revenue Bonds, Series B of 2000
(Lehigh University) Higher Education Revenue Bonds, Series of 2004
(Lehigh University) Higher Education Revenue Bonds, Series B of
2016 (Lehigh University)
Lehigh University:
Taxable Bonds, Series of 2016 Taxable Bonds,
Series of 2020
With regard to evaluating the potential issuance of the Bonds,
the University is considering possible alternatives for refinancing
certain of the University’s existing bonds. The University may or
may not proceed with one or more refinancing alternatives, which
may include a current refunding, defeasance, tender offer, exchange
offer, open market purchase program, privately negotiated
transaction, redemption or other alternatives to refinance all or a
portion of select bonds in its portfolio, with the refinancing
obligations being issued on either a taxable or tax-exempt
basis.
In connection with the issuance of the Bonds the University may
also determine to modify, terminate or suspend one or more of its
interest rate management agreements (“Swaps”) related to certain
outstanding obligations of the University as set forth above.
The size, structure, use of proceeds and timing of issuance of
the Bonds and/or the modification, termination or suspension of one
or more of the Swaps or any portions thereof, remain subject to
market conditions in all respects. If issued, Wells Fargo Bank N.A.
is expected to serve as book running senior manager and BofA
Securities and Jefferies are expected to serve as joint co-managers
and as joint dealer managers for any tender offer.
The size, structure, timing, tax status and use of proceeds for
the Bonds are preliminary and subject to change without notice at
the sole discretion of the University, and the University reserves
the right to issue all, none or a portion of the Bonds described
above and reserves the right to issue additional bonds subject to
market conditions. This announcement does not constitute a
redemption notice with respect to any of the existing bonds issued
by or for the benefit of the University. Nothing contained herein
should be construed as an offer to sell or a solicitation of an
offer to purchase the Bonds. Any offer and sale of any Bonds will
be made only by means of the applicable offering document, if and
when distributed, in connection with the contemplated offering of
the Bonds, which prospective investors should review in its
entirety.
This announcement is for informational purposes only. The
University may modify, discontinue or postpone consideration of the
financing at any time, without notice.
The dissemination of this announcement does not constitute or
imply any representation: (i) that the foregoing is material to
investors; (ii) regarding any other financial, operating or other
information about the University or any outstanding bonds; or (iii)
that no other circumstances or events have occurred or that no
other information exists concerning the University, the Bonds, the
proposed financing, or any outstanding bonds which may have a
bearing on the financial condition of the University, the security
for the Bonds or any outstanding bonds, or an investor’s decision
to buy, sell or hold the Bonds or any other bonds of the
University.
The information provided in this announcement notice is current
as of the date hereof, but there may be events that occur after
such date that could change the information that is presented
herein. The information provided in this voluntary notice should
not be construed as a prediction or representation about future
events or the financial performance of the University. The
potential transactions described herein are subject to conditions
and circumstances that may or may not occur, and no assurance is
given that any such transactions will in fact occur. Any potential
transaction, if pursued, may be discontinued at any time. By making
this announcement, the University does not undertake to make any
additional announcements. The University disclaims any obligation
to update this announcement.
___________________________ * Preliminary, subject to
change.
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For media inquiries Amy White, abw210@lehigh.edu, (610)
758-6656