(NEW YORK) – The Texas State University System (TSUS) this week successfully priced $752.6 million of Revenue Financing System (RFS) Revenue and Refunding Bonds, demonstrating strong investor confidence in the System’s financial strength, stability, and high credit ratings (Aa2/AA).
The transaction will generate approximately $14 million in net present value savings through the refunding of outstanding bonds and conversion of taxable bonds to tax-exempt bonds. Strong interest from more than 80 investors yielded more than $4 billion in orders, allowing the System to achieve lower borrowing costs. The aggregate true interest cost was 4.3%.
The transaction benefits students, faculty, and staff by funding key capital projects across TSUS and refunding outstanding debt to generate significant savings. The successful pricing reflects TSUS’s disciplined financial stewardship and the strength of its operations.
The Texas Revenue Financing System (RFS) is one of the primary tools for funding and modernizing university campuses across Texas, allowing public university systems to issue bonds for major capital projects. By pooling the financial strength and revenues of member institutions to support repayment of the debt, the RFS helps university systems secure lower borrowing costs, making large-scale construction and renovation projects more affordable.
About TSUS
The Texas State University System is the state’s first university system, with seven institutions serving more than 102,000 students from far West Texas to the Gulf Coast. Established in 1911, the mission of TSUS is to provide high-quality, affordable degree and credential programs to meet the needs of Texas’ diverse and fast-growing economy.