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Bonds fare well on Main Street
By Richard Veilleux
May 9, 1997
Nearly 75 percent of the $121 million in UConn 2000 bonds sold between April 3-9 were scooped up not by Wall Street giants but by retail investors.
The $94 million in bonds sold to non-institutional investors was the most successful in-state offering ever of Connecticut bond issues, said David Warren, deputy treasurer for the state.
"The success of the bond sale is the most obvious example of how much support the University enjoys around the state," said state Treasurer Christopher B. Burnham. "Connecticut's flagship higher education institution is being rebuilt with the full backing of its citizens."
Scott Brohinsky, director of University relations, agreed.
"This record-breaking sale provides a great example of the support UConn has not only in the legislature, where the UConn 2000 program was created, but across the state," he said. "Parents, alumni, business leaders and a host of others have been calling for a greater level of state investment in the University. Now, these groups are tapping into their personal financial reservoirs to contribute to that investment. While purchase of the bonds will yield positive returns for investors, the real beneficiaries of this sale will be Connecticut's students and the state more generally."
Of the $94 million in retail sales, more than $6 million in bonds were sold to people who identified themselves as alumni, donors, parents of UConn students, and other friends of the University. Investors with a connection to the University received priority in purchasing the bonds.
Funds raised through the bond issue, the second under UConn 2000, will be used to continue construction of the new chemistry building and the downtown Stamford campus; to cover early costs associated with the new South Campus dormitory project; and to begin work on the marine sciences center at the Avery Point campus in Groton. Some of the money also will be used to begin design and architectural work for a new school of business facility, which will be constructed in 1998.
The first bonds sold under UConn 2000 went on sale February 7, 1996. Proceeds from that sale, for $84 million, were used for equipment and deferred maintenance, and to begin the Stamford and chemistry projects.
Approximately $100 million in bonds are expected to be sold each year of the 10-year program to rebuild and renew the University's campuses.