(Adds refunding details, comment from university spokesman)
By Karen Pierog
Oct 5 Yields on $1.548 billion of Harvard
University revenue bonds fell mostly by 2 to 3 basis points when
the debt was repriced on Wednesday.
The top yield was shaved by two basis points to 2.73 percent
for bonds due in 2040 with a 5 percent coupon. Even though the
bonds are rated AAA, that final yield was 43 basis points over
Municipal Market Data's triple-A yield scale due to a make-whole
call provision, according to MMD.
The 1.60 percent yield on bonds due in 2026 was 8 basis
points over the scale.
The bonds were issued through the Massachusetts Development
Finance Authority and initially priced by underwriters led by
Goldman, Sachs & Co on Wednesday and then repriced to reflect
The university refunded bonds it had sold in 2008, 2009 and
2010, according to the preliminary official statement. The 2008
tax-exempt bonds were sold in a single 2038 maturity with a 4.49
percent yield and 5 percent coupon in the wake of the financial
"Harvard is issuing $2.5 billion of bonds to refinance
existing debt to take advantage of the current low interest rate
environment," university spokesman David Cameron said in an
email. "Harvard has been reducing debt in recent years, and this
refinancing will continue the trend of lowering the university's
Harvard plans to sell about $1 billion of taxable bonds as
soon as Thursday, Cameron added.
(Reporting By Karen Pierog; Editing by Daniel Bases and Richard