About this bond issuance
The College will use the proceeds of the Bonds for the purpose of (a) financing a portion of the cost of the acquisition, construction, rehabilitation, remodeling, renovation, and/or equipping of certain educational facilities (the "Project") and (b) paying certain costs of issuance of the Bonds.
- Construction of two new residence halls on the north campus, which adds approximately 150 beds;
- A parking structure underneath Athearn Field
- A parking deck on the south campus, with an athletic facility on the top level and areplacement facility for the Grounds Shop, currently located on the parking decksite
- A new entrance road from First Street;
- The purchase, from Claremont University Center, of the Central Facilities Services building and the approximately 7 acres of land on which it sits
- A variety of renovation projects, including Norton-Clark III, Walker Hall, Seeley Mudd Library, Bridges Auditorium, and Oldenborg Hall, and improvements to existing athletic fields.
ObligorThe obligor is the organization that holds ultimate responsibility for the bond issuance, and will ensure that investors get repaid.
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
California Educational Facilities Authority
AuthorityBefore an issuer can raise money for a project, they must first have the legal authority to do so. This authority is sometimes preceded by a general election, and awarded after the successful passing of a bond measure.
The California Educational Facilities Authority is a public instrumentality of the State created pursuant to the provisions of the Act. The Authority is authorized to issue theBonds, to make the loan contemplated by the Loan Agreement and to secure the Bonds by pledges of the Revenues derived by the Authority pursuant to the Loan Agreement and certain other sources of payment as provided in the Indenture, including amounts held in the funds and accounts established pursuant to the Indenture (excluding the Rebate Fund).
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
The Authority is obligated to pay the principal or Accreted Value of and interest onthe Bonds solely from Revenues received from the College under the Loan Agreement andthe other funds available therefore under the Indenture. "Revenues" mean all payments received by the Authority or the Trustee pursuant or with respect to the Loan Agreement (except certain payments due and owing to the Authority or the Trustee), including, without limiting the generality of the foregoing, Base Loan Payments (including both timely and delinquent payments) and all income derived from the investment of any moneys in any fund or account established pursuant to the Indenture, but not including amounts, including investment income, received for or on deposit in the Rebate Fund.Pursuant to the Indenture, the Authority pledges to the Trustee for the benefit of the Bondholders all of the Revenues it receives.
The College's payment obligations under the Loan Agreement are general, unsecured obligations of the College. Under the Loan Agreement, the College is unconditionally obligated to pay the Base Loan Payments to be made thereunder, which-8-are due in amounts and at the times necessary to pay the principal (whether at maturity or upon acceleration) of and interest to the maturity date of the Bonds, when due.