The Illinois State University Board of Trustees today approved the redemption of all outstanding Auxiliary Facilities System (AFS) Revenue Bonds, Series 2003. The redemption will be made on or after April 1, using cash reserves from the University’s Auxiliary Facilities System.
By using $8.3 million in cash reserves for bond redemption, the University will see a projected savings of $943,000 over the next 10 years compared to a projected savings of $567,000 using traditional debt refinancing at a lower interest rate. AFS cash reserves total $73.6 million providing more than sufficient balances to cover repair and replacement needs while cash reserves are being repaid from debt service savings.
Illinois State’s Auxiliary Facilities System consists of facilities constructed with funds from debt issuance that is repaid with student fees and other revenues generated by the facilities. The State of Illinois delegated authority to the Board of Trustees to construct and operate such facilities which provide non-instructional student services including housing, dining, athletic and recreation activities, parking and other student activities.