New Jersey Educational Facilities Authority

New Jersey Educational Facilities Authority

Tax-Exempt & Taxable Bonds

Financing Options for Your University

NJEFA provides institutions with the option of publicly or privately sold bonds depending on the wishes of the institution. NJEFA works closely with each institution to thoroughly understand the institutions needs and concerns to obtain the best financing option on a case by case basis.

Public Offering - Publicly offered bonds are bonds made available to the public through an underwriting firm.

Private Placement/Direct Purchase - In private placement or direct purchase transactions, bonds are sold to qualified buyers or placed directly with a bank.

Throughout the course of the transaction NJEFA manages the entire financing process from initial outreach by the institution through the closing of the transaction. NJEFA will:

  • Procure financing professionals
  • Assist in preparation of borrowing documents • Facilitate TEFRA approval (if necessary)
  • Coordinate due diligence
  • Aide in the rating process
  • Participate in negotiation of bond pricings (public offerings)

Eligible Projects: Construction, renovation and acquisition of residential, academic, and research facilities; libraries; technology infrastructures; student life and athletic facilities; parking structures; energy and utilities-related projects; and refinancing of existing debt.

Eligible Institutions: Two- and four -year non-profit institutions of higher education as further defined in NJEFA’s Statute

Fees:

Initial Fees — 20 basis points per series of par amount of bonds issued capped at $125,000.

Annual Fees — 10 basis points per series of declining par amount of bonds outstanding capped at $85,000 per year.

Over 50 years with no defaults

$17.9 billion issues since inception

$329 million in NPV savings since 2015

For More Information Contact:

Steve Nelson
Director of Project Management
Steven.Nelson@njefa.nj.gov


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