Allison BarnetteMontclair State University in New Jersey is selling $66.1 million in general obligation bonds (Series 2025 A) to fund various capital renewal and replacement projects across campus. The funds will also refund part or all of the university’s 2015 D revenue bonds.
The bond sale opened June 12, at approximately $100.95 with a yield-to-worst of about 4.95%. Bonds are set to mature from 2026 to 2042 and are backed by the university’s full faith and credit, rating the bonds A2 with Goldman Sachs as the lead underwriter.
University officials anticipate that refunding earlier bonds with this bond will provide significant long-term interest savings from $20 million to $35 million. This would compare favorably with last year’s refunding, which saved $26 million, according to the university.
Although university officials have not released a specific split for the $66.1 million between the debt refunding and capital improvements, there are several projects planned for both exterior and interior enhancements across the campus.
Academic classrooms and labs, offices, and residential areas will see HVAC upgrades and infrastructure safety code reinforcement, and recreational spaces will benefit as well. The university also plans to purchase or replace some of its fleet vehicles.
Montclair’s bond issuance aligns with its ongoing growth. The 264-acre university currently serves over 23,500 students. It offers over 300 programs across 13 colleges, including its top-ranked education and MPH graduate courses of study. Montclair is developing a reputation for affordability and commitment to social mobility, supporting many first-generation and economically disadvantaged students.
