Pittsburgh Technical College
|Client & Transactional Partners||Pittsburgh Technical College||Our Role||Sole Manager|
On September 23, 2021, KeyBanc Capital Markets (“KBCM”) closed $42.5 million of Tax-Exempt Revenue Bonds, Series 2021 (the “2021 Bonds”), for the Allegheny County Industrial Development Authority on behalf of Pittsburgh Technical College (the “College”). The 2021 Bonds were issued for the purposes of: (i) currently refunding the outstanding Allegheny County Industrial Development Authority, Tax-Exempt Revenue Note, Series 2017 (Center for Excellence in Education Project) (the “2017 Note”); (ii) funding a debt service fund; (iii) terminating an interest rate swap in connection with the 2017 Note; and (iv) paying issuance costs. KBCM served as Sole Manager for the 2021 Bonds.
Through a limited offering process conducted by KBCM and the issuance of the 2021 Bonds, the College restructured its long-term debt with a 29-year level annual debt service structure which generates cash flow relief for the College. With favorable MMD to Treasury rate ratios, the College was able to terminate its swap at a relatively lower cost given higher treasury rates versus their funding cost based off MMD. By locking in long-term financing in a historically low interest rate environment the College was able to eliminate interest rate, credit renewal, and other risks inherent in its prior bank debt structure.
Pittsburgh Technical College, located on a 180-acre campus in southwestern Pennsylvania, is a college with the primary focus of offering Associate degrees, but also offers a limited number of Bachelors’ degrees and certificates. The campus contains student housing, a six-floor education building, and a comprehensive Energy Technology Center. Formerly known as Pittsburgh Technical Institute, in July 2017 it began operating under the name Pittsburgh Technical College. The College operates a private coeducational institution located in Oakdale, Pennsylvania. Average headcount enrollment for FY 2019 was 1,431, which increased to 1,518 students for FY 2020.