Huron Achieves Historic Investment Rating from DBRS and Issuance for New Residence
February 18, 2022
LONDON, ON - The following statement was released today by Dr. Barry Craig, President & Vice-Chancellor of Huron University College:
Today, I am writing you to share an exciting announcement regarding Huron's future.
Recently, Huron University College achieved an inaugural investment grade rating from Dominion Bond Rating Service (DBRS) Morningstar. The rating is supported both by Huron’s position as an outstanding undergraduate liberal arts institution and the demonstrated support of its distinguished alumni and friends.
Today, February 18, 2022, Huron closed a private placement issuance of C$85 million aggregate principal amount of Series A Senior Unsecured Debentures, and rated BBB (L), stable by DBRS, in line with Huron’s issuer rating. Proceeds of the issuance will largely be dedicated to a dramatic expansion and upgrade of Huron’s residence portfolio, including: (1) construction of a new 300-bed student residence and dining hall; and (2) retrofit of the O’Neil/Ridley residence which was built in 1951.
Huron has become the first Canadian University affiliate to be publicly rated and issue bonds in the bond market. Despite the challenges faced by post-secondary universities in light of the pandemic, including impacts to travel restrictions, and virtual learning accommodations, Huron has been able to progress on its strategic priorities to position itself for institutional success by establishing relationships with the financing community, achieving an investment grade rating, and focusing on modernizing its campus to meet growing student demand.
I have to emphasize what an incredible achievement this is for all of us here at Huron. This is a testament to the hard work and dedication of every staff and faculty member who strived to keep our community together through virtual learning, travel restrictions, and a host of other challenges.
This is an achievement for our students, in that we will be able to expand and modernize our residence capacity, with the construction of a new 300-bed student residence and dining hall, and a retrofit of the O’Neil/Ridley residence, built in 1951.
This is an achievement for our future. From the moment I arrived here, I have held the belief that Huron is a very special place. This rating, supported by our partners in the financial community, is an endorsement of our position as an outstanding institution built on academic rigour, a strong sense of community, and a commitment to developing Leaders with Heart.
The University wishes to acknowledge, with gratitude, the involvement of Scotia Capital Inc. as Sole Bookrunner and Capital Structure and Ratings Advisor to Huron during this process.
At a time of great uncertainty in the world, this news is a vote of confidence in the future of Huron. I continue to be as optimistic about that future as I was on the day I arrived on campus. Huron's path forward is bright, thanks to the people that make up our community.
Huron at Western