Mar. 1, 2018
CWU Board of Trustees Unanimously Approves Bond Sale for New Residence Hall
The Central Washington University Board of Trustees Wednesday unanimously approved the sale of bonds generating approximately $48 million to finance a new residence hall, dining facility, and other improvements.
The vote followed a competitive bond auction earlier in the day which locked in a true interest cost of 3.73 percent. CWU officials said they were extremely pleased with the low interest rate, which demonstrates the market's confidence in the financial performance of the university, and will ultimately lead to lower debt service payments over the 30 year life of the bonds.
Earlier this week, the Moody's Investors Service reaffirmed Central Washington University's A-1 bond rating, which is effectively the highest rating a comprehensive university such as CWU can achieve.
"The low interest rate reflected the fact that the bond market believes Central is a financially sound institution," said Joel Klucking, CWU's vice president of financial affairs and chief financial officer. "It indicated that as a result of the strong enrollment growth and a new budget model that emphasizes responsible financial stewardship, Central is on the right path when it comes to its financial direction."
Moody's, which is one of the nation's premier bond credit-rating services, described CWU's financial outlook as stable and said its debt remained at a manageable level. CWU has carried the A-1 rating since 2010.
The university is issuing about $48 million in new bonds to pay for construction of a 402-bed residence hall and 6,000 square-foot dining facility. The project will be located on a nine-acre site at East Dean Nicholson Boulevard and North Wildcat Way.
Media contact: Richard Moreno, Department of Public Affairs, 509-963-2714, Richard.Moreno@cwu.edu.