Iona University to Get $74.7 Million From Sale of Revenue Bonds

By Stephen Nakrosis

Iona University will receive $74.7 million from the sale of tax-exempt municipal bonds, with the proceeds going to support construction projects and pay off existing debt.

The Iona University Revenue Bonds Series 2025 will be sold on the school's behalf by the Dormitory Authority of the State of New York, according to documents posted on MuniOS. The proceeds will then be transferred to the university, which is solely responsible for paying down the debt.

Pricing is scheduled for the week of June 2 and closing is expected on June 18.

Money from the sale will be used for a series of projects including the construction a 2.44 acre green space, the renovation and expansion of student housing facilities, and to pay for work to be done on lab infrastructure in organic chemistry and tennis courts. Funds will also be used to pay off all or a portion of the school's Series 2015 A bonds and an outstanding term loan from Bank of America.

Interest on the bonds will be paid starting Jan. 1, and again on July 1.

Iona is a private, catholic university north of New York City, with campuses in New Rochelle and Bronxville. Founded in 1940, Iona has about 3,900 students and operates schools of arts and science, business and health sciences.

Moody's rates the bonds Baa2, and S&P Global Ratings has the debt rated BBB.

Loop Capital Markets is sole senior managing underwriter on the sale.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com