Whittier College Closes $60 Million Bond Issue

Whittier College News Release

Whittier College
Office of Public Relations
13406 Philadelphia St.
P.O. Box 634
Whittier, CA 90608-0634

April 15, 2004
Reference: 03/04: 51
Contact: Judy Browning at (562) 907-4216
or Jan Legoza at (562) 907-4205

Whittier College Closes $60 Million Bond Issue

          Taking advantage of historically low interest rates, Whittier College successfully closed a $60 million Series 2004 bond issue this week, according to Jan Legoza, vice president for finance and administration.
In an announcement to the campus, Legoza said, “These bonds give us an excellent opportunity to enhance the college’s overall financial strength, while significantly improving our ability to serve students and enhance the campus environment.”
          The $60 million bond issue will provide approximately $55 million in proceeds, with the difference being used for a debt service reserve fund and issuance costs, Legoza said. Of this amount, approximately $40 million will be used to refund the college Series 1993 Bonds or held to acquire Whittier Law School’s property and facilities in Costa Mesa. Approximately $15 million will be used for capital projects.
The bonds were issued through the City of Whittier but are secured by the general revenues of the college and a mortgage on the law school property, Legoza said.

          “Additionally, we were successful in securing a BBB investment rating from Standard and Poor’s. This is an important public indicator of the college’s financial strength and good management. Nevertheless, we found that it was more cost effective to insure the bonds. Thus, the bonds are insured by Radian, which means they were sold with Radian’s AA rating.”
Projects under consideration include creation or renovation and expansion of the campus center (student union), improvements in existing academic and residential buildings –particularly to address issues of deferred maintenance, but also to create program improvements–and construction of suite- or apartment-style student residences.
In addition, Whittier Law School has identified a new office and classroom building as a high priority, Legoza said.
          The college’s Board of Trustees is expected to approve a final list of projects to be funded at its meeting in May. After that, Legoza said, the college will create “multi-constituency building committees to oversee programming and hire architects to assist in the planning process. This work will begin this summer and continue into the next academic year.
          Located 18 miles east of Los Angeles, Whittier College is an independent, four-year college offering traditional liberal arts majors and strong pre-professional programs taught in the context of the liberal arts. Whittier Law School, which is accredited by the American Bar Association and is a member of the Association of American Law Schools, is located on a separate campus in Costa Mesa.        

 

Whittier College Office of Communications
13406 Philadelphia » P.O. Box 634 » Whittier, CA 90608-0634
Tel: (562) 907-4213 » Fax: (562) 907-4927

communications@whittier.edu