MISSOULA – The University of Montana issued $146.8 million of taxable and tax-exempt bonds Thursday, which will allow the state’s Missoula-based flagship university to usher in a new era of growth and development in support of students.
UM President Seth Bodnar, along with a small team of University officials and students, traveled to New York for the bond sale. UM recently had its Aa3 rating from Moody’s Investors Service reaffirmed with a stable outlook, affirming its place among the nation’s top-rated colleges and universities for financial strength and stability.
The bonds were University of Montana general revenue bonds issued by the State of Montana Board of Regents of Higher Education. Morgan Stanley led the sale on behalf of the University. In addition to refinancing substantially all of its outstanding debt, the bond issuance generated approximately $63 million that will be invested in UM’s student-serving infrastructure.
“Institutional investors in Thursday’s sale included the most recognized and well-respected investors in the national bond market,” Bodnar said. “Their confidence investing in our students and our mission is inspiring.”
UM bonds were also sold to retail customers.
As UM approaches its 127th anniversary next year, Bodnar said the sale of the bonds will be used to finance capital improvements with the approval of the Board of Regents.
“We will invest the bond proceeds and future cash flow savings to revitalize our student housing, dining, recreational facilities and educational spaces, as well as completing deferred maintenance projects and plant upgrades that will result in significant utilities savings and a reduced carbon footprint,” Bodnar said. “We are excited to usher in the next chapter of growth for the University of Montana.”
UM advances a mission to provide a high-quality and accessible education at a world-class research university. The Missoula campus is recognized nationally and internationally as a flagship institution of the Montana University System and has produced 28 Rhodes Scholars, the 17th highest of any university and fifth highest among public universities.
Reflecting its commitment to the state and its Native American heritage, the University has achieved 42 Udall Scholars and 13 honorable mentions for leadership, public service and commitment to issues related to Native American nations or to the environment – the most of any university in the nation.