Stanford University sold $143 million of taxable, senior unsecured bonds due in 30 years, according to data compiled by Bloomberg.
Stanford, the fifth-richest U.S. school, issued the 4.013 percent notes due in May 2042 to yield 70 basis points more than similar-maturity Treasuries, Bloomberg data show. Goldman Sachs Group Inc. and Morgan Stanley managed the offering.
Stanford joins a procession of schools including University of Pennsylvania and Northwestern University that usually sell tax-free debt in the municipal market. These institutions are now tapping demand for taxable corporate bonds in the highest ratings categories.
Moody’s Investors Service assigned an Aaa grade to Stanford’s taxable debt, the ratings firm said in a March 28 report.
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