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.