TROY—Troy University trustees today voted to issue $63 million in bonds for the construction of a new multi-purpose arena, a dining facility and a student housing project.
The unanimous vote clears the way for the new bond issue that has achieved an A1 rating by Moody’s Investor Services, and will become the first University-let bond that will be first offered to faculty, staff and alumni before being offered to institutional investors.
“The strong Moody’s rating means that we have maintained our financial position amid the current credit crisis and is reflective of the conservative stewardship of the University,” said Chancellor Jack Hawkins Jr. “It’s a testament to the board of trustees’ leadership and planning.”
In addition to the new construction, the bond issue will also refund the 2002 series variable-rate bond, effectively decreasing the amount the University pays in interest and stand-by purchase costs to the bond trustee, said Mr. Jim Bookout, senior vice chancellor for finance and business affairs.
“This bond is unique in several different ways. For one, private investors – faculty, staff and alumni – will have the opportunity to purchase these bonds before institutional investors,” he said. “These bonds will pay semi-annual interest and they’re reasonably safe for people looking to invest money during these challenging economic times.”
The new issue will also help the University free up some cash that would normally be set aside as collateral for the loan, such as a debt reserve fund.
The multi-purpose arena is expected to seat between 5,000–6,000 spectators in a basketball setting with additional floor seating for major University events such as commencements, convocations and other large-scale events. That structure may also include a student recreation facility.
The new dining hall will include seating for about 1,000 students and include about 40,000 square feet. The existing Stewart Dining Hall, by contrast, seats only about 400 students at a time.
The University’s Fraternity Village will replace outdated structures along Pell Avenue to house TROY’s growing men’s Greek organizations. As part of the project, each fraternity must lease new facilities from the University.