Provident proudly served as the Owner/Borrower for an ambitious project at William & Mary, Virginia's esteemed institution established in 1693. With a commitment to modernizing and replacing aging on-campus student housing and dining facilities, the team successfully reached financial close by securing over $242 million through tax-exempt revenue bonds. Collaborating with key stakeholders, including William & Mary, Balfour Beatty Campus Solutions, LLC, and others, we ensured the realization of these essential projects. Provident takes immense pride in contributing to the enhancement of student life and the future of higher education at this historic institution.
On July 12, Provident reached financial close on over $242 million of tax-exempt revenue bonds, issued through the Economic Development Authority of the City of Williamsburg, Virginia, for essential student housing and dining projects on the campus of William & Mary in Williamsburg, Virginia. Established in 1693, William & Mary holds the distinction of being the second oldest higher education institution in the United States, and Provident takes pride in being chosen as the Owner/Borrower for this endeavor, working in collaboration with the University, Balfour Beatty, Brailsford & Dunlavey, RBC Capital Markets, and numerous other stakeholders to make these projects a reality for the University and its students.
The Projects financed support William & Mary’s Vision 2026 plan, which features a housing and dining master plan to position the University to meet future strategic needs. Over the course of ten years, William & Mary will renovate or replace 80% of its housing system in a complete transformation of the on-campus residential experience.
Financing. The Housing Projects were financed through the issuance of $217.165 million fixed rate tax-exempt Student Housing Revenue Bonds by the Economic Development Authority of the City of Williamsburg, Virginia (“Williamsburg EDA”), amortizing over 40 years. Security is provided by revenues of the Projects, combined with a University Contingent Lease Agreement and a bond insurance policy provided by Assured Guaranty. The strength of the combined security enhancements provides for initial ratings of “A+” and “AA” for the underlying credit and insured credit, respectively.
For the Dining Project, $24.96million of tax-exempt lease revenue bonds were issued simultaneously with the Housing Bonds. Also amortizing over 40years, the Dining Bonds are secured by a direct lease obligation of William& Mary, providing a AA rating from S&P on the strength of the University's credit.
Development & Management. Balfour Beatty Campus Solutions, LLC, served as the Developer, with Balfour Beatty/Kjellstrom + Lee, a joint venture, serving as the Design-Builder. William & Mary is primarily responsible for managing the Projects.