Ottawa University announced the successful closing of the $38.5 million Series 2020 Bonds previously issued by Ziegler Co. Inc., a specialty investment bank.

This transaction marked the university’s first public bond offering with Ziegler. Proceeds from the fixed-rate, tax-exempt bonds will be used to buy the new state-of-the-art buildings on the Surprise campus — Scholars Hall and the OUAZ Union — which are currently being leased from NOVO Development LLC of Phoenix.

The buildings constitute $34.5 million of the $38.5 million total. The remaining $4 million will go toward refinancing several capital leases the university currently has in place at both the Ottawa and Surprise campuses.

The transaction will save the university several million dollars in the first four years and more than $20 million over the term of the bonds.

“We were very pleased with the support, counsel and execution of the Ziegler team,” Ottawa Chancellor Kevin Eichner said. “This bond offering was very well received in the market, not only because Ottawa has a great story to tell, but because we have excellent people to help us tell it and to make sure it was shared with people who were able to discern what sets our institution apart. All around, this was a very successful engagement that is providing much needed capital to sustain our university’s growth.”

Brian Riordan, managing director and head of Ziegler’s Higher Education Finance Practice, spoke highly of Ottawa University’s future vision and its leadership team.

“Ottawa’s vision for the future is strong, and their recapitalization will pave the way for additional success,” Riordan said. “University leadership shared the story of Ottawa’s tremendous growth, which was very well received in the capital markets. We were excited to partner with such a dynamic team. Bright days ahead for Ottawa!”

Ziegler is one of the nation’s leading underwriters of financing not-for-profit borrowers. Ziegler offers creative, tailored solutions to its higher education clients, including investment banking, financial risk management, merger and acquisition services, private placement services, USDA financing, capital and strategic planning as well as higher education research, education and communication.

For information about Ziegler, visit ziegler.com.

Information on OUAZ can be found at ottawa.edu/ouaz.