ELLENSBURG, Wash. (March 6, 2013) — Central Washington University has completed refinancing $53.6 million in bonds in a sale that will save the university $10.8 million over the next 22 years. The bonds were initially issued in 2004 to fund construction of the Student Union and Recreation Center and other campus projects.
“The refinancing is now expected to save the university about $430,000 a year in interest for the next two years and $498,000 annually after that,” said CWU President James L. Gaudino. “We were pleased to hear that we will save even more money than was initially projected. ”
The old bonds were sold under an A2 rating. Moody’s Investors Service last week reaffirmed CWU’s A1 bond rating, which allowed for the refinancing.
“This strong evaluation came at a time when the credit ratings for other state and federal institutions have dropped," noted George Clark, CWU vice president for Business and Financial Affairs.
Moody’s A1 rating of CWU was based, in part, on its evaluation that, “CWU has a solid position as a regional public university with an access-oriented mission,” “conservative budgeting,” and is "proactive in its expense management."
The university first received an A1 bond rating in 2010, which allowed CWU to complete a $34.5 million, 30-year-bond sale used to replace Barto Hall with a new 368-bed, four-story residence facility.
University bonds are supported by revenue from residence halls, dining services, parking, the Wildcat Shop, and mandatory services and activities fees.
Moody’s is a top credit-rating agency that performs international financial research and analysis on commercial and government agencies. The Moody’s rating is a forecast of the credit-worthiness of an institution—the likelihood that the institution will be able to repay the bonds. It provides such ratings whenever an institution is preparing to issue bonds for a project.
Media contact: Linda Schactler, executive director, CWU Public Affairs, 509-607-4103, email@example.com