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The Public Finance Authority closes $71 million public-private partnership financing for San Diego State University Student Housing

Unique Financing Provides San Diego State University with Critical Student Housing Facilities

The Public Finance Authority (PFA) announces the closing of a public-private partnership financing for student housing at San Diego State University (SDSU).  As a result of PFA’s unique financing and project ownership, SDSU will realize several benefits:

  • SDSU will maintain debt capacity by not adding obligations to its balance sheet, and it will be able to provide a 384-bed student housing facility without having to undertake the construction, management, operation or financing of the project.
  • The financing was arranged without having to create a new nonprofit corporation to act as a borrower, saving costs and time in connection with obtaining 501(c)(3) determination for the entity.
  • SDSU will lower costs and improve its housing services by using the expertise and personnel of the private sector.

The Senior Series A Bonds are unrated and unenhanced fixed-rate bonds with a term of 35 years.  Interest and principal on the Subordinate Series B Bonds issued to the Seller as part of the purchase price will be payable out of available cash flow after debt service and principal on the Series A Bonds are paid.
The finance team included Orrick, Herrington & Sutcliffe, LLP as bond counsel, BLX Group as financial advisor, von Briesen & Roper, s.c. and Phillips Borowski, s.c. as co-issuer counsel, and Stoel Rives, LLP as issuer’s real estate counsel.