MIT completes advance refunding of bonds sold in 2008, 2009
Earlier this week, MIT priced an advance refunding of some $454 million of outstanding tax-exempt bonds that the Institute sold in 2008 and 2009. The transaction, which will be completed on Monday, allows MIT to “refinance” the debt from these earlier bond sales to take advantage of today’s low interest rates. As part of the transaction, MIT issued $522 million in taxable debt, maturing in 2019, 2026, and 2038 and yielding 3.85 percent. However, the Institute’s overall debt load will only increase by about $69 million, because the 2008 and 2009 bonds will now come off its balance sheet. The advance refunding affects two tax-exempt Series O and Series N bond issuances that MIT made in August 2008 and January 2009, respectively. Those issuances raised roughly $600 million that was used to finance construction of various capital projects, including the Koch Institute for Integrative Cancer Research, the MIT Media Lab’s Building E14,...