Bond Proceeds Will Also Support Renovations to Residential Hall, New Classrooms and Mechanical Plant
The Dormitory Authority of the State of New York (DASNY) today closed on a $140,425,000 bond issuance for Pace University that will support improvements at the University’s One Pace Plaza building, including the construction of a new performing arts center, among other significant improvements.
Specifically, the Series 2024A bonds will support the construction and equipping of a new 100,000 square foot, state-of-the-art performing arts center consisting of a 450-seat proscenium theater, 200-seat flexible theater, 99-seat black box theater, scene and costume shops, dressing rooms, rehearsal rooms, dance studios, and public gathering spaces. The proceeds also will support classrooms and the renovation and expansion of a 12-story, approximately 95,000 square foot residential hall with approximately 516 beds, among other facility upgrades. Additionally, a new mechanical plant will enable the University to slash carbon emissions and boost energy efficiency.
The bonds received great investor interest, with oversubscriptions across all maturities resulting in a lower cost of capital.
DASNY President Robert J. Rodriguez said, “DASNY is proud to help Pace University access capital financing for projects that will enrich their students’ educational experiences and present them with new opportunities for growth. We look forward to seeing the buildings that are receiving bond proceeds when construction is completed.”
“Pace University has embarked on the transformative revitalization of One Pace Plaza East, a visionary project set to redefine our campus, the heart of Downtown Manhattan, and cement our role as leaders in performing arts education,” said Pace University President Marvin Krislov. “Showcasing the brightest talents from our Sands College of Performing Arts, this new beacon of culture will forge powerful connections between Pace students and faculty, artists, and local residents.”
The yields on the bonds ranged between 3.63 percent and 4.44 percent, with a True Interest Cost of 4.75 percent. The lead manager of the transaction was BofA Securities, and the transaction was supported by co-bond counsel Orrick, Herrington & Sutcliffe LLP, and Marous Law Group, P.C.