CHICAGO, April 30, 2024 /PRNewswire/ -- The University of Chicago (the "University")
today announced, in connection with the University's previously
announced plan to issue tax-exempt bonds, an offer to purchase any
and all of the University's outstanding taxable fixed rate bonds
described in the table below (together, the "Bonds"), for
the consideration listed in the table below. Capitalized terms used
but not defined in this press release have the meanings given to
them in the Offer to Purchase (as defined below).
Priority
|
Series
|
CUSIP
|
Maturity
|
Optional
Redemption
Date
|
Interest
Rate
|
Outstanding
Principal
Amount
|
Reference U.S.
Treasury Security
|
Bloomberg
Reference
Page
|
Fixed Spread
(Basis Points)
|
Eligible
Purchase
Amount
|
1
|
2015B
|
91412NBB5
|
10/1/2033
|
Not
Applicable
|
4.261 %
|
$27,895,000
|
4.000% due
2/15/2034
|
FIT1
|
+25.0
|
$14,504,000
|
2
|
2015B
|
91412NBA7
|
10/1/2030
|
Not
Applicable
|
3.972 %
|
10,240,000
|
4.625% due
4/30/2029
|
FIT1
|
+20.0
|
5,324,000
|
3
|
2014B
|
91412NAK6
|
10/1/2044
|
10/01/2024
|
4.411 %
|
175,685,000
|
4.500% due
2/15/2044
|
FIT1
|
+25.0
|
121,219,000
|
4
|
2021B
|
91412NBG4
|
10/1/2052
|
04/01/2052
|
3.000 %
|
350,495,000
|
4.500% due
2/15/2044
|
FIT1
|
+30.0
|
157,722,000
|
5
|
2013B
|
91412NAJ9
|
10/1/2045
|
Currently
Callable
|
4.151 %
|
205,000,000
|
4.500% due
2/15/2044
|
FIT1
|
+27.5
|
98,399,000
|
6
|
2015B
|
91412NAZ3
|
10/1/2029
|
Not
Applicable
|
3.922 %
|
9,845,000
|
4.625% due
4/30/2029
|
FIT1
|
+15.0
|
5,119,000
|
7
|
2015B
|
91412NAY6
|
10/1/2028
|
Not
Applicable
|
3.772 %
|
9,470,000
|
4.625% due
4/30/2029
|
FIT1
|
+12.5
|
4,924,000
|
8
|
2015B
|
91412NAX8
|
10/1/2027
|
Not
Applicable
|
3.622 %
|
9,125,000
|
4.500% due
4/15/2027
|
FIT1
|
+10.0
|
4,745,000
|
The Purchase Price for each CUSIP number of Bonds payable per
each $1,000 principal amount of Bonds
bearing such CUSIP number validly tendered for purchase will be
based on the Fixed Spread for the Bonds bearing such CUSIP number,
plus the Reference Yield of the Reference Security on the Price
Determination Date. The Purchase Price does not include the
applicable accrued interest, which will be payable in cash in
addition to the applicable Purchase Price. Each Tender Offer will
expire at 5:00 p.m., New York City time, on May 7th, 2024, unless extended or
earlier terminated (the "Expiration Time"). Holders who have
validly tendered their Bonds may withdraw such Bonds at any time at
or prior to the Expiration Time. The Guaranteed Delivery Date is
expected to be May 9th,
2024. The University expects to pay the applicable consideration
for Bonds validly tendered, and not validly withdrawn at or prior
to the Expiration Time, on May
14th, 2024 (the "Settlement Date"). Each
Tender Offer is conditioned upon satisfaction of certain
conditions, but none of the Tender Offers is conditioned upon
completion of any of the other Tender Offers. The source of funds
to purchase the Bonds validly tendered for purchase pursuant to the
Tender Offers will be limited to proceeds of the Illinois Finance
Authority Revenue Bonds, The University of
Chicago, Series 2024A (the "2024A Bonds"),
anticipated to be issued by the Illinois Finance Authority (the
"Authority"), together with any other available funds that the
University may decide to apply to such purchase.
In addition to the above mentioned Tender Offers, the
University, on behalf of the Authority is also executing in
parallel to this transaction a tender offer on select tax-exempt
securities.
The complete terms and conditions of the Tender Offers are set
forth in the Offer to Purchase Bonds, dated April 30th, 2024 (the "Offer to
Purchase"), and in the related notice of guaranteed delivery
(the "Notice of Guaranteed Delivery" and, together with the
Offer to Purchase, the "Tender Offer Documents"), along with
any amendments and supplements thereto, which holders are urged to
read carefully before making any decision with respect to the
Tender Offers. The University has retained RBC Capital Markets, LLC
to act as the Dealer Manager in connection with the Tender Offers.
Questions regarding the Tender Offers may be directed to the Dealer
Manager who can be reached at +1 877 381 2099 (toll-free) or +1 212
618 7822 (local). Copies of the Tender Offer Documents may be
obtained from Globic Advisors, the Tender and Information
Agent for the Tender Offers, by phone at +1 212 227 9622, by email
at rstevens@globic.com or online at
www.globic.com/uchicago.
This press release must be read in conjunction with the Offer to
Purchase. This press release and the Offer to Purchase contain
important information which should be read carefully before any
decision is made with respect to the Tender Offers.
This press release is neither an offer to purchase nor a
solicitation of an offer to sell any securities. The Tender Offers
are being made only by, and pursuant to the terms of, the Tender
Offer Documents. The Tender Offers are not being made in any
jurisdiction in which the making or acceptance thereof would not be
in compliance with the securities, blue sky or other laws of such
jurisdiction. In any jurisdiction where the laws require the Tender
Offer to be made by a licensed broker or dealer, the Tender Offer
will be made by the Dealer Manager on behalf of the Issuer. None of
the University, the Tender and Information Agent or the Dealer
Manager, nor any of their respective affiliates, makes any
recommendation as to whether holders should tender or refrain from
tendering all or any portion of their Bonds in response to the
Tender Offers.
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SOURCE The University of Chicago