Board authorizes up to $500 million in facilities bonds and a $500 million commercial paper program

The Board of Regents on Aug. 14 authorized two major financing resolutions to provide capital flexibility for system projects.

The first resolution authorizes financing through the University of Nebraska Facilities Corporation for an amount not to exceed $500 million to finance various projects. The resolution allows a maximum maturity of 40 years, though actual maturities will be determined by market conditions and are expected to be 30 years or less. The resolution also delegates to specified officers—among them the president and the senior vice president and chief financial officer—the authority to finalize terms and execute financing documentation. Finance staff told the board the internal lending program is fully subscribed and that the bond authorization will provide capacity for upcoming projects; each individual project will return to the board for review and approval prior to issuance.

The board also authorized the creation of a commercial paper notes program of up to $500 million outstanding at any time. Board materials and staff described the commercial paper facility as a short-term financing vehicle to complement long-term bond financing, to be used for timing and cash-flow needs related to projects (including timing of philanthropic gifts and state funding). As with the bond authorization, finance staff said any project financed with commercial paper will be brought back to the board for review and approval.

Both items were reviewed and recommended by the Business and Finance Committee and approved by roll-call votes during the meeting.