by Ward Mullens, Published April 21, 2009
YPSILANTI —The Eastern Michigan University Board of Regents, at its regular meeting today, granted authority to President Susan Martin to refund bonds and borrow new money to help finance several projects on campus.
“This allows the University to lower the interest rates we are currently paying on our existing debt and provides the ability to borrow additional funds for the new science complex and other needed improvements to campus facilities,” said John Lumm, interim chief financial officer for EMU.
The board authorized the University to borrow up to $125 million that will be used for construction, expansion and/or improvements to campus facilities.
The authority given to Martin to refund EMU’s bonds will allow the University to switch its letter of credit from Dexia Credit Local to JPMorgan Chase Bank. Dexia’s national credit ratings have been reduced, causing a significant increase in interest rates payable on those bonds.