Northern Michigan University Plans $80.3M Bond Issuance for Campus Projects

Northern Michigan University plans to issue $80.3 million in revenue bonds to finance capital projects on campus, including a new apartment-style housing facility, science and business school additions, and library renovations. The tax-exempt bonds will mature between 2026 and 2055 and are backed by the university's general revenues, which totaled $158.8 million in FY24. The bonds are rated A1 by Moody's and A by S&P.

Northern Michigan University (NMU) has announced plans to issue $80.3 million in revenue bonds to finance various capital projects on campus. The bonds, which are tax-exempt, will be used to fund the construction of a new apartment-style housing facility, additions to the science and business schools, and renovations to the library. The bonds will mature between 2026 and 2055 and are backed by the university's general revenues, which totaled $158.8 million in FY24.

The bonds are rated A1 by Moody's and A by S&P, reflecting the university's strong financial condition and the stability of its revenue streams. The issuance of these bonds is part of NMU's ongoing efforts to enhance its campus infrastructure and provide better facilities for students and faculty.

This issuance comes amid a broader trend of colleges and universities issuing bonds to finance capital projects and shore up liquidity, as seen in the data from investment firm Janney Montgomery Scott [2]. For instance, Harvard University has issued $1.18 billion in bonds so far in 2025, while 99 colleges and universities have issued $20.8 billion in public debt this year [2].

The issuance of these bonds by NMU is a strategic move to secure long-term funding for critical infrastructure projects, ensuring the university can continue to provide high-quality educational facilities for its students. The university's strong credit ratings and stable revenue streams provide confidence to investors and financial professionals that the bonds will be repaid as scheduled.

References:
[1] https://illinoiscomptroller.gov/financial-reports-data/data-sets-portals/illinois-bond-debt
[2] https://www.forbes.com/sites/emmawhitford/2025/06/10/colleges-big-and-small-issue-bonds-amid-political-chaos-and-trumps-higher-ed-assault/