Texas State University System Refinances Bond Debt, Saves $8.5 Million (7/19/10)
(AUSTIN, TX) – Taking advantage of record-low interest rates, The Texas State University System has refinanced $100 million of construction bond debt, saving the state nearly $8.5 million. The TSUS Board of Regents authorized the action July 14. The total interest cost for the transaction is 2.787%.
“With interest rates below three percent, we decided to move aggressively and refinance the system’s bond debt,” said Chancellor Brian McCall. “The Texas State University System is always looking for ways to maximize the use of public funds we receive. This transaction will save millions of dollars and improve our ability to deliver services more efficiently.”
In addition to saving $7.7 million on TSUS bond debt, the transaction will save the Texas Tech University System more than $800,000 related to construction projects at Angelo State University, which were financed before Angelo State moved from TSUS to the Texas Tech System in 2007.
TSUS maintains its Moody’s bond rating of Aa2 for the transaction, which includes approximately $75 million in new money to support approved construction projects at Sam Houston State University, Texas State University-San Marcos and Lamar State College-Port Arthur.
The Texas State University System is Texas’ oldest and third-largest university system, serving more than 72,000 students at eight institutions.