Bonds sell for $80M

Oberlin sold $80 million dollars' worth of bonds this week, a move that will partially finance the planned Science Center and refinance the College's debt.

Andy Evans, vice president for finance, said he had not expected the bonds to bring in so much revenue. Timing and a strong financial rating, however, combined to make the bonds popular.

The 30-year bonds were sold primarily to large insurance and bond companies, Evans said. They were particularly attractive to Ohio investors because they are tax-free in Ohio.

The College's AA rating was another factor that led to the bonds' popularity. The rating, which was determined this January by a rating agency, reflects Oberlin's financial stability. The highest, and least risky, rating is AAA. "A lot of institutions you've heard of would have ratings of B's or C's," Evans said.

The bonds will provide income to finance the Science Center while the College continues to raise money. A project like the Science Center requires a large up-front investment; $50 million of the $80 will go toward that initial cost.

The rest of the revenue will go to refinancing the College's debt. Due to the current financial climate this move will save the College $1 million, according to Evans.