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UM Board approves new financing plan

University of Missouri

    

The University of Missouri Board of Curators unanimously voted to approve a financing plan that will allow the sales of revenue bonds in order to fund the construction projects in the UM system. The board voted to approve $150 million of the $255 million of the system’s revenue bonds last night.

       The revenue bonds will be sold to investors for them to invest in the UM System. In turn, the money will be used to finance the capital projects across the four UM system campuses. The approval will allow them to pay off the costs of the new construction projects over time.

       John Fougere, the UM System’s Chief Communications Officer said that the historically low interest rates and the UM System’s good credit rating from Moody and S&P allowed the financing plan to pass.

       “One of the most important things to consider is because of excellent stewardship of our public resource at the system, we have a strong credit rating from the credit agencies,” said Fougere. “This allows us to sell bonds to investors and sends a message to them that it is a good place to invest.”

       The investors buying bonds allows the system to finance important projects—something that the system would not be able to do without a good credit rating.

       Most of the construction projects are on the MU campus but there are some on the Saint Louis and Rolla campuses.

       Currently, the MU campus has three projects all in housing units: Wolpers and Johnston, Virginia Avenue South and Jones, Lathrop and Laws. The financing plan ensures that the students will have access to better and improved facilities, which is important for student experience.

       Director of Residential Life Frankie Minor said, “The cost of these projects are so significant that revenue bonds are the only feasible way to do it. The only other ways would be for us to either have a significant donor or for us to save money for a very long period of time.”

       The Recreation and Wellness Resource Center will also be benefiting from the sales of the revenue bonds. In addition, the new residence hall at the Rolla campus that will add about 450 more beds, ensures that the facility will be much better, according to Fougere.