Upper Iowa University secures bonds for new campus buildings - KWWL - Eastern Iowa Breaking News, Weather, Closings

Upper Iowa University secures bonds for new campus buildings


FAYETTE (KWWL)--- Upper Iowa University has  successfully secured $44,290,000 from revenue bond financing that will be used to complete construction of new student-focused buildings on UIU's residential campus here.  UIU is completing the first phase of its largest capital construction program ever, a $75 million plan.  The current phase includes a suite-style residence hall, a Liberal Arts building, a student center, construction of a retail location in downtown Fayette, and other campus improvements.  The residence hall and new academic building are scheduled to be open for Fall 2010 classes, and the student center, downtown location, and campus improvements will go into operation in January 2011.

Issuance of the bonds through the Iowa Higher Education Loan Authority this month followed receipt of a BBB+ stable rating by Fitch Ratings on April 30.

"The agency's rating at a time when many other colleges and universities are being downgraded is a testament to the reality that UIU is headed in the right direction and making sound decisions that will secure the University's future.  We are grateful to the agency for this first-ever bond rating for the University," said UIU President Alan G. Walker.

Don Aungst, executive vice president and UIU chief financial and planning officer, noted that the Fitch rating and the level of institutional buyer interest in the bonds resulted in a "true interest cost" of 5.95 percent for the bond issue and is projected to save the University more than $13 million in total debt service expenses over the 30-year life of the bonds.

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