Edgemoor and KU reach financial close on campus expansion PPP

PFAL congratulates our client, Edgemoor Infrastructure & Real Estate, and the University of Kansas on reaching financial close of the $350m Central District Development Project. PFAL acted as financial advisor to Edgemoor for this transaction that will result in the construction of:

  • A new Integrated Sciences Building
  • New student housing facilities including apartments​, a residence hall with suite-style rooms, and a new dining center.
  • A new Student Union building
  • A new central utility plant
  • Infrastructure improvements including parking facilities, road realignment, and utility upgrades

Edgemoor will be responsible for delivering the new infrastructure over a 2.5-year program under a fixed price, date-certain contract and for providing certain operations and maintenance services under a separate contract. KU will make annual lease payments to a newly formed special purpose company, the KU Campus Development Corporation, sufficient to cover all debt service requirements.

The financial structure consists of 100% tax exempt debt. The 30 year bonds were rated Aa2 by Moody’s and have an average life of just under 20 years. The bonds were sold at a favorable all-in interest rate of 3.76%. JP Morgan acted as the lead underwriter and bookrunner.

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