The Southeast Missouri State University Board of Regents today approved a resolution to issue System Facilities Revenue Bonds Series 2020, the proceeds of which will be used to refund System Facilities Revenue Bonds, Series 2013A resulting in debt service savings for the University.
The resolution gives the University flexibility in monitoring marketing conditions and being ready to sell bonds when debt service savings are at an acceptable level without further action by the Board, provided certain parameters are met, according to Kathy Mangels, vice president for Finance and Administration. Under the resolution, when University administration, underwriter Hilltop Securities and bond counsel Thompson Coburn determine market conditions are favorable, a sale notice will be issued to investment banking firms, banks and other financial institutions. Mangels also would be authorized to award the purchase of Series 2020 Bonds to the best bidder.
The Regents issued $82.5 million Series 2013A bonds and $2.05 million Taxable System Facilities Revenue Bonds Series 2013B in February 2013 to build and furnish the Kenneth and Jeanine Dobbins River Campus Center and to advance refund System Facilities Revenue Bonds Series 2006A and 2008. The Series 2013B bonds matured in 2018, and the Series 2013A bonds were subject to redemption on or after April 1 of this year.
The debt service savings realized from the refunding will reduce the annual expense for the Residence Life auxiliary system, the Student Recreation Center/Aquatic Center auxiliary and General Operating debt service expense for the academic portion of the Dobbins Center, Mangels said.