U of T First Canadian University to Issue Debt Securities

On July 18, 2001, the University of Toronto became the first Canadian university to offer debt securities via the capital markets. The university sold $160 million of 30-year debentures by private placement across Canada. The debentures bear a 6.78 per cent coupon and were priced at $99.962 to yield 6.783 per cent or 65 basis points above comparable Canada bonds. The issue was rated AA-plus by Standard & Poor’s and Aa2 by Moody’s Investors Service. CIBC World Markets Inc., Merrill Lynch Canada Inc. and RBC Dominion Securities Inc. were the underwriters.

Jeffrey Roy and Alexandra Raphael of Cassels Brock & Blackwell LLP acted for the University of Toronto, while Carol Pennycook and Julie Lane of Davies Ward Phillips & Vineberg LLP acted for the underwriters.