Transaction Details

Aurora University

Municipal

Lead Bookrunner

Baird served as the sole underwriter on the University’s $15,300,000 Adjustable Rate Demand Economic Development Revenue Bonds, Aurora University, Series 2025 which were rated “A2”/”VMIG 1”.

Baird has served as sole underwriter on three financings for the University since 2019 totaling $56,790,000 in par amount.

The Bonds were issued to finance certain improvements to the University’s Main Campus, including the construction of a three-story 45,000 square foot Learning Commons that will house the library, career services, study rooms, a café, a technology hub, the university archives, and a corporate lounge for employers.

Baird priced the Bonds at the SIFMA Index. The interest rate adjusts weekly and the Bonds are subject to optional redemption at any time. The Bonds were sold to 100% retail investors, which included 13 different retail accounts.

BMO Harris Bank provided an irrevocable direct-pay letter of credit to secure payment of principal and interest for the Bonds. The financing 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.