Bond Series: 2013 Series A Bonds
Closed: May 29, 2013
Bond Size: $18,000,000
Credit Rating: Not Rated
Credit Enhancement: None
Purchaser: Merchants Bank
Interest Rate: Variable Rate, Tax-Exempt
Final Maturity: 2028
Yield: Swapped to a synthetic fixed-rate with an effective loan rate of 2.48%
Purpose: Construct and fit-up a new student dormitory; and ii) Pay certain costs associated with issuing the bonds.
Project Benefit: This project will help the college to achieve its goal of housing all of its undergraduate students on campus, which it feels will help with student recruitment and retention.
Champlain expects the project to have a positive impact on both the school’s cash flow and income statement starting in year one and thereafter.
Economic Benefits: The project will bring over $17M into the local economy in construction costs alone. 60% of the dollar value of the construction will go to Vermont based sub-contractors, with 160 to 200 people employed.