AMU Closes Bond Refinancing
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Published on Thursday, 11 July 2013 21:21
Ave Maria University has completed a restructuring of $60,515,000 in debt through the issuance of new, 30-year tax exempt bonds that are expected to provide the school with greater financial stability and reduced costs.
AMU President Jim Towey called the refinancing a validation of the university's stability.
"Here we are, a relatively unknown university, and tough, objective observers decided they wanted to invest in us," Mr. Towey said in an interview. (Right, Mr. Towey celebrating at the Queen Mary Pub with faculty and staff.)
The bonds restructure debt that was primarily issued to build residence halls and townhomes in the Middlebrooke neighborhood that the university owns, primarily to for housing for graduate students and married students.
The refinancing reduces the university's exposure to potentially higher interest rates, Mr. Towey said, as well as eliminating some "antiquated covenants and collateral requirements which hamper governance and long-term planning," and will save the university money by no longer requiring "costly letters of credit."
