Board of Regents authorizes KU revenue bonds for cancer research building, housing and refinancing

At its Jan. 14 meeting in Topeka, the Kansas Board of Regents voted to approve a resolution allowing the Kansas Development Finance Authority to issue revenue bonds to support capital projects at the University of Kansas.

Director Chad Bristow told the board the request includes authority to issue up to $100 million in revenue bonds for the Cancer Center Research Building — part of a project the university has increased to a $330 million budget and just over 280,000 square feet — and up to $100 million for additional student housing. Of that housing authority, Bristow said $35 million would be used to purchase Hawker Apartments, where KU has leased student space since 2023. The request also seeks authority to refinance outstanding lease-development bonds, including not-to-exceed amounts of $276 million for refunding and a planned $34 million refunding of the 2014C series, with total refundings described as just under $310 million.

Bristow said the combined refinancing and refunding would result in an estimated savings of almost $27 million. He explained the university will secure the bonds with generally available unencumbered funds while debt service will be paid from a combination of university and affiliated sources and remain within the university's debt limits. Jeff DeWitt, who spoke in response to a board question, said KU's current credit rating is AA2 and that the metrics presented should produce a relatively favorable interest rate in the low 4% range for the new money and refundings.

The board voted on a staff recommendation to approve the resolution; the motion was made by Regent Wolfmore and seconded by Regent Johnston and carried on a voice vote.

The action authorizes the university to move forward with financing and refinancing as outlined; Bristow told the board staff would continue to provide oversight information for debt-burden and coverage metrics required under board policy.