Museum of Natural History: Bond Offering Signals Post-Pandemic Rebound

The American Museum of Natural History (AMNH) is tapping the municipal bond market for an $85 million boost, signaling a post-pandemic rebound and renewed financial stability. The bond offering, expected to price on Oct. 17, will help the 155-year-old institution lower its interest expenses and recover costs from building the Gilder Center, a major 21st Century addition.


The sprawling landmark on the Upper West Side of Manhattan welcomed 5 million visitors last year, second only to the city’s Metropolitan Museum of Art among US museums. However, the Covid-19 pandemic hit hard, forcing the venue’s closure between March and September 2020 and cutting average annual paid attendance by 37% that year. The drop caused a shortfall of $18.8 million in 2020, according to bond documents, and annual deficits persisted for two more years despite a hiring freeze and job furloughs.

The museum's post-pandemic attendance recovery has been significant, with net operating revenue of $0.06 million in fiscal 2023. The opening of the Gilder Center in May 2023 has been a cornerstone in this financial turnaround. The new wing, designed by an architectural team led by Jeanne Gang, houses a butterfly conservatory, an insectarium, classrooms, laboratories, a library, and a large theater, among other gallery and storage spaces.


The bond sale will cover $30 million of capital work completed this year and lower costs on $65 million of existing debt. Moody's Ratings analysts, led by Debra Roane, assigned the bonds a Aa3 rating, citing the museum’s “premier” position nationally and globally, its post-pandemic recovery, and strong fundraising track record. However, these strengths are tempered by relatively high leverage, a complex physical plant requiring ongoing investment, and debt structure risk that includes potential demands on liquidity.

The museum had $409 million in debt outstanding at the end of June 2023, with $43 million of other capital projects underway, according to the bond offering. Despite these challenges, the museum's strong fundraising track record and premier position have instilled confidence in bond investors, who see the institution's financial management as a sound investment.