PULLMAN – In a move projected to produce a net present value savings of nearly $4 million by 2032, WSU this month conducted a $38,425,000 bond refinancing to redeem bonds issued originally in 1998 for construction of the Student Recreation Center.
Barry Johnston, WSU assistant vice president for business and finance, said issuance of the tax-exempt refunding bonds was approved by a resolution of the WSU Board of Regents in September and completed Oct. 6 at an actual interest rate of 4.01 percent. The proceeds of the sale will be used to redeem about $40 million in bonds issued in 1998 at an average rate of 5 percent. Redemption of the original bonds will be completed in November, he said.
The refinancing is expected to produce a net savings of more than $111,000 in 2010 and more than $257,000 annually in each ensuing year through 2032, Johnston said. Savings from the refinancing will be a key consideration by the University Recreation Advisory Board in determining the recommended 2010-2011 operating budget.
“With this level of savings, I believe there is a high probability the board will still be positioned to meet the high demand for services without increasing the SRC fee for 2010-2011,” said Kathleen Hatch, executive director of University Recreation.
Students constitute a majority on the board, holding 11 of the 16 positions. The budget process for the SRC will take place in the spring.
