Financial Markets' Strong Vote of Confidence in Drexel
July 29, 2020
Dear Members of the Drexel Community,
At a challenging time for the finances of all colleges and universities, I’m pleased to announce that Drexel recently raised $256.4 million in the bond market on favorable terms that will benefit the University’s endowment, secure our investment in St. Christopher’s Hospital for Children, and enhance the quality of academic and student life on campus. This included $104 million in taxable corporate bonds, $134.7 million in tax-exempt bonds, and $17.7 million in a refinancing bond issue. Demand for these investments was high, with 44 unique institutional accounts making purchases. This issuance replaces the University’s variable rate debt, therefore de-risking the investment portfolio and providing additional security to the University during these uncertain times.
The bond proceeds will repay endowment loans associated with Drexel’s joint purchase with Tower Health of St. Christopher’s, as well as renovating Bentley Hall for the Pennoni Honors College. The funds will also provide the University with the flexibility to manage through the uncertainty of the next several years due to the pandemic.
I want to thank all the investors in these bonds for their vote of confidence in Drexel. It’s a great source of reassurance and pride that the University is highly regarded as a secure, long-term investment. Thanks to Executive Vice President Helen Bowman and her team in the Finance and Treasurer’s Offices for their outstanding work on these transactions.