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June 5, 2020

Yale issues $1.5 billion bond offering

PHOTO | New Haven Biz Yale University's Sterling Memorial Library.
By Michael C. Bingham

Yale University will issue a new $1.5 billion taxable public bond offering effective June 9. 

The Series 2020A offering consists of five-, ten- and 30-year taxable bond offerings of $500 million each with an expected final maturity date of 2050. The bonds will be offered in minimum denominations of $1,000.

Proceeds from the offering will be used for “general corporate purposes,” according to the offering statement. Yale University is classified as a 501(c)(3) non-profit organization under the 1986 IRS tax code.

The offering is jointly underwritten by Barclays, Goldman Sachs and J.P. Morgan.

The bonds are rated Aaa by Moody’s and AAA by Standard & Poors, the highest ratings awarded by those credit agencies.

The university did not have an immediate comment on the bond offering Friday morning.

In other university financial news, Yale’s publicly disclosed U.S. stock portfolio surged in value during the first quarter of 2020 as the endowment added exchange-traded funds (ETFs) and technology shares during the coronavirus-fueled market plunge.

The endowment’s equities increased to $267.4 million as of the end of March from $62.8 million at the end of last year as the university greatly expanded its holding in the SPDR S&P 500 ETF and established a new position in the Vanguard FTSE Developed Markets ETF, according to Bloomberg.

The Yale endowment’s most recent public value was $30.3 billion, making it the second-richest private U.S. college, following Harvard University.

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