By Daniel C. Houston
Baylor sold $120 million worth of bonds this week to finance key construction and renovation projects approved by the board of regents in November.
The university sold all the bonds within a two-hour period Wednesday, Dr. Reagan Ramsower, vice president for finance and administration, said.
“We had very good demand, very good response,” Ramsower said. “There were offers to buy a greater dollar amount of bonds than we had supply.”
The money raised will cover the full cost of constructing the East Village Residential Community, and will fund future projects including Phase 2 of the Baylor Research and Innovation Collaborative construction and the renovation of the Marrs McLean Science Building.
The Fitch Group rated Baylor’s bonds as a “stable” investment, citing Baylor’s consistent increase in student-generated revenues, such as tuition, as reasons to believe the university will be able to make good on its payments.
The ratings report also noted the university’s flexible budgetary methods allow it to adjust expenditures if revenues don’t meet expectations. Baylor’s operating margin remained positive in 2011, but weakened for the third consecutive year, according to the report.