UNL Bond Sale

[BigRedBuster]

I know this doesn't have anything to do with athletics or the AD department or the recently announced athletic facility upgrades.  But, this board doesn't really have a good place to ask about the academic side of UNL.  So, I'm putting it here.  If you don't like it....well....phewy on you.

Does anyone know what this is all about?  I don't remember UNL selling bonds bofore.  I know state funding for the University has been a major issue at the legislature level for a while now and they have really been cutting back on the level of funding the are doing.

Is this how UNL is getting around this?  I also know (with 3 kids there) tuition keeps going up up up.  Is this an attempt to curb that some?

Thanks for any info someone has.

Maybe they've done this before and I just don't know it.

 

[JJ Husker]

This doesn’t answer your question but if they can’t get by on what they’re charging students, I can’t imagine it’s a very good investment. I also have one kid attending there (out of state tuition) and it’s ridiculous. About all that can be said for it is that it’s cheaper than most, if not all, other B1G schools. I’m just glad my daughter is going to get out of there with her degree in 3 to 3.5 years. Can’t imagine paying for 3 kids even at in state rates.

 

[ColoradoHusk]

As someone who is well-versed in Finance, there are numerous reasons why the University could be selling bonds.

1.  Needing a lot of upfront cash for buildings and other capital investments (which the Tweet mentions)

2.  Taking advantage of lower interest rates to pay off other debt (basic refinancing).

3.  I think NU was going to sell bonds to help pay for the new football facility, so this could be part of that

4.  Taking on additional debt instead of dipping into endowment reserves (re-balancing the balance sheet).

There is nothing wrong with companies/universities taking on debt.  With interest rates so low, it's a cheap way to get extra cash, and the University can use future tuition and state funds to pay that debt obligations.  I would rather have the University borrow $ instead of dipping into the endowment reserves, which can be invested in equities and other higher risk funds to earn a greater return.

 

[BigRedBuster]

As someone who is well-versed in Finance, there are numerous reasons why the University could be selling bonds.

1.  Needing a lot of upfront cash for buildings and other capital investments (which the Tweet mentions)

2.  Taking advantage of lower interest rates to pay off other debt (basic refinancing).

3.  I think NU was going to sell bonds to help pay for the new football facility, so this could be part of that

4.  Taking on additional debt instead of dipping into endowment reserves (re-balancing the balance sheet).

There is nothing wrong with companies/universities taking on debt.  With interest rates so low, it's a cheap way to get extra cash, and the University can use future tuition and state funds to pay that debt obligations.  I would rather have the University borrow $ instead of dipping into the endowment reserves, which can be invested in equities and other higher risk funds to earn a greater return.

Please don't take my post above as that I'm against this.  Like you have pointed out, there are obviously good reasons why a company/entity would sell bonds.

Just wondering if the University has put out any statement as to their exact reasoning.

 

[ColoradoHusk]

Please don't take my post above as that I'm against this.  Like you have pointed out, there are obviously good reasons why a company/entity would sell bonds.

Just wondering if the University has put out any statement as to their exact reasoning.

Saw this in the top paragraph behind a paywalled article.  They are basically taking advantage of lower rates.


When the University of Nebraska Facilities Corp. prices $550 million of bonds Thursday, it will use the lion's share of proceeds to refinance and restructure outstanding debt issued under a master trust indenture.

 

[BigRedBuster]

Saw this in the top paragraph behind a paywalled article.  They are basically taking advantage of lower rates.


When the University of Nebraska Facilities Corp. prices $550 million of bonds Thursday, it will use the lion's share of proceeds to refinance and restructure outstanding debt issued under a master trust indenture.

Thanks...that answers a lot.

 

[JJ Husker]

As someone who is well-versed in Finance, there are numerous reasons why the University could be selling bonds.

1.  Needing a lot of upfront cash for buildings and other capital investments (which the Tweet mentions)

2.  Taking advantage of lower interest rates to pay off other debt (basic refinancing).

3.  I think NU was going to sell bonds to help pay for the new football facility, so this could be part of that

4.  Taking on additional debt instead of dipping into endowment reserves (re-balancing the balance sheet).

There is nothing wrong with companies/universities taking on debt.  With interest rates so low, it's a cheap way to get extra cash, and the University can use future tuition and state funds to pay that debt obligations.  I would rather have the University borrow $ instead of dipping into the endowment reserves, which can be invested in equities and other higher risk funds to earn a greater return.

Yeah, I’m not against them issuing bonds either. It’s sure preferable to raising tuition and housing even higher and faster. And it probably isn’t a bad investment either. I just wanted to vent about all the money I’m hemorrhaging to UNL.

 

[Hayseed]

I’m wondering about all these dorms that are popping up on every downtown corner.

Are they full? Are they building them to replace old ones that have been torn down?

Can ordinary students really afford to live in them? They seem like great facilities but kind of pricey.

Does the construction of these student group apartments have anything to do with the bonds?

 

[GBRFAN]

Kids don't want to live in the old traditional dorms.  There are a lot of students that aren't "ordinary" when it comes to funds and then their are a lot of "ordinary" parents that will spend money they don't have for their kids.  The "new" dorms fill up way faster then the "old" ones. You will continue to see the old buildings come down to make way for new ones.

 

[BigRedBuster]

I’m wondering about all these dorms that are popping up on every downtown corner.

Are they full? Are they building them to replace old ones that have been torn down?

Can ordinary students really afford to live in them? They seem like great facilities but kind of pricey.

Does the construction of these student group apartments have anything to do with the bonds?

Both old and new are fairly full. 
 

my daughter lived in the old as a freshman and the newer apartments as a sophomore. Her and her room mates were glad they lived in the old dorms as freshmen because it’s easier to meet people and socialize. 
 

the new apartments are a nice transition to off campus because they are furnished. 

 

[JJ Husker]

Both old and new are fairly full. 
 

my daughter lived in the old as a freshman and the newer apartments as a sophomore. Her and her room mates were glad they lived in the old dorms as freshmen because it’s easier to meet people and socialize. 
 

the new apartments are a nice transition to off campus because they are furnished. 

This is exactly what my daughter did. Schramm as a frosh and Village Apts this year. Much easier to meet people in the traditional dorms. The suites/apartments you don’t see near as much of other students and in some ways it’s almost the same as living off campus. And of course the newer/nicer/larger apartments cost more.

I would add, most universities are going to the suite/apartment style housing due to student demand. Even smaller less costly schools like the Univ of Northern Colorado have gone to this style primarily. They are nice for sure but there are some social trade offs.