Louisiana Public Facilities Authority Lease Revenue Bonds (South Quad L3C – Louisiana State University South Quad (Phase IV) Project), Series 2025

Transaction highlights

On September 16 2025, RBC Capital Markets served as Sole Managing Underwriter on $199,265,000 Louisiana Public Facilities Authority Lease Revenue Bonds (South Quad L3C – Louisiana State University South Quad (Phase IV) Project). The proceeds of the Series 2025 Bonds are being used to finance new on-campus student housing, consisting of two residence halls adding approximately 1,266 beds. In addition, the proceeds will be used to construct related surface parking facilities and the Park & Geaux Mobility Hub. The South Quad Project is the fourth phase of a public-private partnership development venture to revitalize sections of the University’s campus, create a significant new gateway onto campus, and provide new on-campus housing to meet the demands of the University’s students. The South Quad Project will be located on the University’s campus off South Quad Drive on what is now the Touchdown Village East parking lot. This location is in direct proximity to the University’s College of Engineering in Patrick F. Taylor Hall and the E.J. Ourso College of Business.

Summary of Terms

Client Overview

South Quad L3C (the "Borrower"), is a Louisiana low-profit limited liability company, the sole member of which is the LSU Real Estate and Facilities Foundation, a Louisiana nonprofit corporation (the "REFF"). The REFF supports all LSU campuses and the LSU Foundation, focusing on development and management of LSU facilities. The Borrower was formed by its filing of Articles of Organization with the Louisiana Secretary of State on April 30, 2025, for the purpose of planning, developing, financing, equipping, administering, operating and maintaining one or more student residential communities, retail facilities, dining facilities, parking facilities and other related facilities on the campus of the University exclusively for the benefit and support of the University and its students.

Since opening its doors in 1860, the University has served the people of Louisiana, the region, the nation and the world through extensive, multipurpose programs encompassing instruction, research, and public service. The University is located on more than 2,000 acres in the southern part of Baton Rouge, Louisiana, the capital of the State, and is bordered on the west by the Mississippi River. The University's more than 250 principal buildings are grouped on a 650-acre plateau that constitutes the main part of the campus. The University is accredited by the Southern Association of Colleges and Schools and offers 2 undergraduate certificates, 82 bachelor's degrees, 5 post-bachelor's certificates, 75 master's degrees, 53 doctoral degrees, 1 post-doctoral certificate, 1 education specialist, 3 professional degrees, 1 post-professional certificate, and 31 graduate school certificates. The University produces approximately 30% of Louisiana's graduates with baccalaureate degrees, 20% of the master's degrees, and 53% of the doctoral degrees.

With a portfolio of 100 campus developments, more than 59,000 beds of student housing and over $4.2 billion in development value, RISE: A Real Estate Company ("RISE" or the "Developer") is an experienced leader in the student housing industry. Founded in 1995 and headquartered in Valdosta, Georgia, RISE is a pioneer of the higher-ed P3 industry and specializes in providing development, construction management, and property management services for both on- and off-campus student housing communities throughout the country. Institutions previously served include the University of Tennessee, University of Maryland, University of Delaware, Louisiana State University, University of Georgia, University of Louisiana at Lafayette, University of Virginia, University of North Georgia and University of South Dakota.

Transaction Overview

This transaction marks the fourth phase of student housing projects developed by RISE at Louisiana State University that RBCCM has financed. RISE and University approached RBCCM earlier this year for the upcoming project given the longstanding comfort and trust in RBCCM as its financing partner for its Lease Revenue Bond transactions. All of the bonds are fixed rate, current interest bonds with a 40-year term with underlying ratings from Moody's and Fitch of A3 and A, respectively. The bonds are wrapped with bond insurance from Assured Guaranty Incorporated with an insured rating of A1.

With timing constrained by construction scheduled to break ground on October 1 and the Fed meetings the week of September 15, RBCCM weighed options of when best to enter the market and ultimately decided to get in ahead of the FOMC Press Conference and price Tuesday, September 16. While primary supply was limited the week of pricing due to the Federal Reserve meeting, most transactions that week were also slated to price on the Tuesday, the 16th. In the two weeks prior to pricing, the municipal market rallied with AAA MMD tightening 35 to 41 bps in the part of the curve where our bonds were structured. RBCCM and their sales force worked diligently to market the bonds and educate investors on the merits of the project against the congestion on pricing day. Despite the noise of the impending FOMC Press Conference and busy primary market that day, the transaction generated strong demand from all types of investors with orders placed from over 50 different accounts. Ultimately, the Series 2025 Bonds were 3.5 to 11.5 times oversubscribed, enabling RBCCM to make significant adjustments throughout the structure and lower the cost of capital.