By Stephen Nakrosis

The Chester County Industrial Development Authority plans to issue about $83.7 million in student housing revenue bonds for West Chester University.

The bonds will be issued in two tranches: $79 million of Series 2024 A tax-exempt bonds and $4.5 million of federally taxable Series 2024 B bonds, according to a preliminary official statement posted Tuesday on MuniOS.

Pricing is scheduled for Oct. 17, and the transaction is expected to close Oct. 31.

The securities are backed by a leasehold mortgage and a lien on rents and revenues of the Allegheny and Brandywine Hall projects. Series A debt reaches final maturity in 2048 and the Series B debt in 2034, but both of those are subject to change, according to a road show document on MuniOS. The Series A debt is callable starting on Aug. 1, 2034, and the Series B bonds are non-callable.

Proceeds from the sale will refund Series 2008 A-1 and A-2 bonds that still have about $77.2 million outstanding. Close to $9 million will be used to terminate interest rate swap agreements, and about $7 million to fund capital expenditures to improve student facilities.

Money from the 2008 sale was used to finance the design and construction of Allegheny and Brandywine Halls, which opened in 2009. The halls are owned and operated by University Student Housing, a nonprofit company with six housing facilities on the university's campus.

West Chester University is the largest of the 10 schools that make up the Pennsylvania State System of Higher Education. Located 25 miles west of Philadelphia, the university had total enrollment of 17,076 in the fall of 2023.

S&P Global Ratings has assigned the securities an underlying rating of BBB-. The rating rises to AA based on the expectation that the bonds will be insured by Build America Mutual Assurance.

Raymond James is listed as the offering's lead manager.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 08, 2024 19:01 ET (23:01 GMT)

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