NEW YORK CITY—A consortium of financial institutions led by Citigroup Global Markets has purchased nearly $559 million in Dormitory Authority of the State of New York bonds for renovation of the Icahn School of Medicine at Mount Sinai.
About $52 million of the principal amount of the 30-year, fixed-rate, tax-exempt and taxable bonds was made available immediately as a mortgage payment to refinance and upgrade about 57,200 square feet of research laboratories, support services, infrastructure, conference rooms and other interior space in the 26-story Annenberg Building at 1180-88 Fifth Avenue, in addition to 8,000 square feet of faculty and staff office space at the Icahn Medical Institute Building at 1425 Madison Avenue.
The Citigroup led group purchased $558.6 million of Series 2015 bonds issued by DASNY. The purchase price includes the $512.4-million issuance from the Dormitory Authority, a $48.4-million premium and a $2.3-million underwriter's discount, according to a report in Real Estate Capital.
On May 13, the DASNY Board approved up to $580 million in fixed rates bonds for the Icahn School of Medicine at Mount Sinai in relation to capital improvements to certain buildings. Proceeds from the financing are expected to be used to refund all or a portion of previously issued DASNY bonds on behalf of the Mount Sinai School of Medicine of New York University.
In addition to Citigroup, serving as underwriters and counsel on the deal were: Goldman Sachs, Academy Securities, BofA Merrill Lynch, Fidelity Capital Markets, J.P. Morgan, Morgan Stanley, Ramirez & Co., Rice Financial Products Co., Stifel and TD Securities. See story at Real Estate Capital.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.