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Commission takes first reading on $55 million conduit bonds for WKU Student Life Foundation
Summary
On first reading the commission considered an ordinance authorizing up to $55 million in industrial revenue conduit bonds to finance improvements for WKU Student Life Foundation; staff emphasized the bonds are pass-through conduit financing and not obligations of the city.
The Bowling Green City Commission conducted the first (nonbinding) reading of an ordinance to authorize issuance of Industrial Building Revenue Bonds, Series 2025, in an aggregate principal amount of $55 million (with a potential 10% upward adjustment) to benefit the WKU Student Life Foundation, Inc.
City staff and finance advisors explained these bonds would be issued as conduit financing — a pass-through mechanism in which the city acts as an issuing conduit but incurs no debt service obligation — and would be serviced by the Foundation. Mark Rawlings (financial advisor) described the notes as variable-rate, construction-period financing with a two-year final maturity and an expectation that longer-term financing would take out the short-term notes before maturity.
Commissioners asked whether the bond issuance would affect the city’s ability to issue its own debt; staff replied it would not use the city’s bond rating and that the city would bear no obligation if the Foundation defaulted. The ordinance advanced on first reading; further legislative action will be required for final authorization.
