Lakehead University Announces $100 Million Debenture Issue
(Thunder Bay, November 2, 2005) Lakehead University announced today that it has engaged RBC Capital Markets to act as its exclusive selling agent in connection with the issuance and sale by the University of an estimated $100 million principal amount of senior unsecured debentures by way of private placement to institutional and other accredited investors. The offering is expected to close on November 15, 2005.
The net proceeds from the proposed offering will be used to refinance existing debt, for general corporate purposes, and to establish an internal endowment fund. Michael Pawlowski, Vice President (Administration and Finance), commented that "The debenture financing will increase our financial flexibility because the University intends to apply a significant portion (approximately $30 million) of the total net proceeds of the issue to an internally restricted endowment, which will provide the University with substantial liquidity. The proceeds of the private placement will provide the University with the funding necessary to continue its managed growth and next-level success in the near future."
On October 11, 2005, Moody's Investors Service announced a rating of A1 for the University's debentures. Details of the rating can be seen at:
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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Media: University President Dr. Fred Gilbert and Michael Pawlowski are available for interview. Please contact Marla Tomlinson at 807-343-8177 or 807-472-9113 to arrange to speak with either spokesperson.