ISU debt refinancing seen to save $24 million over 25 years

Posted on October 20, 2017

 

ISU Board of Trustees
Illinois State University Trustees have approved debt refinancing of two major projects to take advantage of low interest rates. (WJBC file photo)

By Howard Packowitz

NORMAL – Illinois State University is banking on low interest rates to save tens of millions of dollars.

ISU’s governing board has approved selling bonds next year to refinance debt for Cardinal Court student housing and the Student Fitness Center.

President Larry Dietz said total savings from issuing auxiliary facilities system revenue bonds for both projects could save about $24 million over the next quarter-century as the bonds reach full maturity.

“At current interest rates, we believe the university will save $21 million for the remaining life of the newly-issued bonds for Cardinal Court, spread over 25 years,” Dietz said.

The university is acquiring the remaining portion of Cardinal Court that it doesn’t currently own, so the property can be incorporated into its auxilary facilities system.

Refinancing the Student Fitness Center is expected to save ISU about three-million dollars over the remaining 15-year life of the bonds.

Board of Trustees Chairman Rocky Donahue praised administrators for putting safeguards in place should world events like a war rattle bond markets and cause interest rates to climb.

Howard Packowitz can be reached at [email protected]

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