Trinity College, which has faced financial difficulties in recent months due to the coronavirus pandemic, plans to issue $ 51.6 million in bonds to refinance existing debt, according to a snapshot of the financial transaction.
The bonds will be issued by the Connecticut Health and Educational Facilities Authority (CHEFA), the state’s self-funding, quasi-public agency that issues tax-exempt bonds on behalf of nonprofit institutions, according to a preliminary statement by ‘obligation.
The money will be used to refinance three different outstanding bond issues. This decision comes at a time when interest rates are historically low. Trinity College plans to issue the bonds through CHEFA sometime next week.
The bond deal comes as Trinity, like many U.S. colleges, faces a host of financial challenges due to the fallout from the COVID-19 pandemic, which forced the school to close its campus in March for prevent the spread of disease.
Trinity chose to repay $ 5.1 million in room and board payments, after sending most of the students on campus home. In April, Trinity pulled out its entire $ 10 million line of credit as a “precautionary measure,” the school reported. He also received $ 1.38 million under the federal CARES Act.
The college expects a loss of less than 1% of its operating revenue for fiscal 2020 – which ends July 1 – mainly due to refunds, according to Trinity. Revenue from Trinity’s operations in fiscal 2019 was just under $ 152 million.
The surety’s opening statement also says the Liberal Arts College, which enrolled more than 2,100 students last fall, plans to reopen its Hartford campus from September 1, as long as Trinity fills out the so-called “Control conditions”, including lower and sustained transmission of COVID. -19 in the community.
“Assuming all closing conditions are met, the college expects to begin on-campus learning after September 1, 2020 and conclude the fall 2020 semester before Thanksgiving,” the preliminary release said.
The announcement comes as the University of Connecticut, the University of Hartford and the Connecticut college and university system have also made plans to reopen their campuses to residential and suburban students for the fall semester.