EMU Regents authorize the issuance and delivery if revenue bonds
YPSILANTI — The Eastern Michigan University Board of Regents authorized the issuance and delivery of general revenue bonds at a special meeting March 14 at Eagle Crest Conference Center.
“The University will save hundreds of thousands of dollars in monthly interest payments by issuing new bonds with a different bond structure,” said Janice M. Stroh, vice president of business and finance at EMU.
Increasing defaults in the residential subprime mortgage market have had a severe negative impact on the bond insurance companies which have provided credit enhancement to the University’s Series 2001 and Series 2006A variable rate demand bonds.
The two insurance companies that insured the University bonds, XL Capital and Financial Guaranty Insurance Company (FGIC), have each had their ratings downgraded as a result of losses they have incurred and are expected to incur on securities tied to pools of residential subprime mortagages.In response, EMU is seeking alternative credit facilities to replace the existing credit structures.
Eastern Michigan University is a public, comprehensive university that offers programs in the arts, sciences and professions. EMU prepares students with the intellectual skills and practical experiences to succeed in their career and lives, and to be better citizens.
Editor's Note: Looking for an expert source for a story? Check out EMU's Eastern Experts online at www.emich.edu/univcomm/easternexperts.