The College of Idaho
Overview
| Deal Type |
Debt Capital Markets |
|---|---|
| Size |
$27 Million Nonprofit Facilities Revenue Bonds |
| Client & Transactional Partners |
The College of Idaho Idaho Housing and Finance Association |
| Our Role |
Sole Manager |
Summary
On October 12, 2023, KeyBanc Capital Markets (KBCM) served as Sole Manager for $27 million par amount of Idaho Housing and Finance Association Nonprofit Facilities Revenue Bonds (The College of Idaho Project) Series 2023 (the 2023 Bonds). The 2023 Bonds were issued to (i) refund the College of Idaho’s (the College) Series 2016 bank debt; (ii) finance construction and renovation costs for campus facilities; (iii) fund a debt service reserve fund; and (iv) pay costs of issuance. As Underwriter, KBCM led an extensive due diligence and rating strategy process, obtaining a first-time, “BBB” public rating for the College from Standard & Poor’s. Additionally, KBCM was able to improve the College’s security and financial covenants under the 2016 Bonds by (i) releasing the mortgage on College-owned properties; (ii) eliminating the College’s debt coverage ratio; and (iii) improving liquidity covenants. The 2023 Bonds also lowered risk in the College’s debt portfolio through termination of an existing interest rate swap, paying off its existing floating rate bank debt subject to renewal risk, and locking in a fixed rate to create cash flow certainty.
The College was founded in 1891 by William Judson Boone and built on the mantra, “Let them come, let them all come, and we will see what they can do.” Accredited by the Northwest Commission on Colleges and Universities since 1922, the College was the first institution of higher education to begin operating in the state of Idaho and has over 130 years of experience. The 55-acre campus is adjacent to the historic district of Caldwell, approximately 30 minutes from downtown Boise. Facilities include 16 academic, athletic, student life and support buildings and five residence halls, along with suite-style apartments and rental houses adjacent to campus. The College offers undergraduate liberal arts and graduate education programs.
