By Zaeem Shoaib


Lehigh University will receive $125.8 million from the sale of fixed-rate revenue bonds which will be use to finance capital projects, refund outstanding bonds and pay for other costs.

The capital projects to be paid for include the construction, improvement, renovation, furnishing and equipping of facilities at the Pennsylvania university's Northampton County campus. Proceeds will also be used to refund outstanding bonds from 2000 and 2004, according to a preliminary offering statement on Munios.com posted on Monday.

The bonds are expected to price on Aug. 7 with an expected closing date of Aug. 15, according to a roadshow presentation for the bonds.

Principal and interest on the bonds are backed solely by a pledge of the gross revenues collected by the university. The bonds will be sold on the school's behalf by the Northampton County General Purpose Authority.

Located in Bethlehem, Pa., Leigh University currently has about 5,800 undergraduate students and over 1,700 graduate students on a full or part-time basis.

The university had about $2.51 billion of net assets as of June 30, 2023, and its fiscal year 2023 endowment and annuity life income was valued at about $1.80 billion, according to the roadshow presentation. It had a net operating loss of $9.7 million for 2023 and expects an operating loss of $15 million to $20 million for 2024 due to certain strategic investments.

Moody's Ratings has rated the bonds Aa3, and S&P Global Ratings has assigned them a rating of AA-.

Wells Fargo is serving as lead manager on the deal.


Write to Zaeem Shoaib at zaeem.shoaib@wsj.com


(END) Dow Jones Newswires

07-16-24 1156ET