By Aaron Hochman-Zimmerman
New York, April 27 - Stanford University in California priced $1 billion series 2009A taxable bonds over three tranches (Aaa/AAA/AAA) on April 23, according to chief financial officer Randy Livingston.
The school priced $350 million bonds due May 1, 2014 at 99.895 with a coupon of 3.625% to yield 3.648%.
A $250 million tranche due May 1, 2016 priced at 99.724 with a 4.25% coupon to yield 4.296%, while a $400 million tranche due May 1, 2019 priced at 99.70 with a coupon of 4.75% to yield 4.788%.
Goldman Sachs & Co., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. were lead underwriters along with co-manager Prager, Sealy & Co., LLC for the negotiated deal.
Proceeds from the sale will be used for general budgetary purposes.
The university received an endowment of $17.2 billion as of Aug. 31, 2008; however, the school hopes to reduce distribution of its endowment by 25% over the coming two fiscal years.
Stanford University is located in Stanford, Calif.
| Issuer: | Stanford University
|
| Issue: | Series 2009A taxable bonds
|
| Total amount: | $1 billion
|
| Type: | Negotiated
|
| Underwriters: | Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. (leads); Prager, Sealy & Co. LLC (co-manager)
|
| Pricing date: | April 23
|
| Settlement date: | April 29
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Fitch: AAA
|
|
|
| Five-year bonds
|
| Amount: | $350 million
|
| Maturity: | May 1, 2014
|
| Coupon: | 3.625%
|
| Price: | 99.895
|
| Yield: | 3.648%
|
|
|
| Seven-year bonds
|
| Amount: | $250 million
|
| Maturity: | May 1, 2016
|
| Coupon: | 4.25%
|
| Price: | 99.724
|
| Yield: | 4.296%
|
|
|
| 10-year bonds
|
| Amount: | $400 million
|
| Maturity: | May 1, 2019
|
| Coupon: | 4.75%
|
| Price: | 99.70
|
| Yield: | 4.788%
|
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