Las Cruces – The New Mexico State University Board of Regents gave final approval for the issuance of $78.67 million in system revenue bonds with a total interest rate of 3.93 percent.
Jennifer Taylor, senior vice president of business, finance and human resources at the university, requested the bonds to finance building and improvement projects.
The sale of bonds is the means by which institutions such as NMSU borrow money for projects. This action will allow the university to self-fund capital construction and renovation projects, including improvement to the health center, the second phase of the Chamisa student housing complex, and a new campus bookstore, arts center and central utility plant expansion. The bond issuance also will allow the university to refinance about $13 million in outstanding debt, resulting in an 8.44 percent savings.
Taylor said the university's Master Plan for development of the Las Cruces campus is the driving force behind the selected projects, identified by NMSU as priority initiatives to meet current campus population needs and position the university for continued growth.
"Even in the current economic climate, we have a responsibility to continue to grow to meet the needs of our current and future students," Taylor said.
Revenue bonds are special types of municipal bonds distinguished by their guarantee of repayment solely from revenues generated by a specified revenue-generating entity associated with the purpose of the bonds. Only the revenues specified in the legal contract between the bond holder and the bond issuer are required to be used for repayment of the principal and interest of the bonds.