MU MOVES FORWARD WITh PhASE I OF ThE
Master Plan
Methodist University entered the investment bond market this summer, receiving a solid BBB investment grade from both Fitch and Standard & Poors, which allowed the University to move forward with a $16.8 million bond offering in August. Investor confidence in the University appeared strong when the bonds were offered for sale, with more than $88 million in purchase requests. “That represents in very important financial terms that potential investors are ‘bullish’ on Methodist University,” said President Hancock. “This wouldn’t have been possible without the hard work of our trustees and University staff, who gave an ‘A’ performance over multiple years, setting the stage for this hugely successful bond offering.” The bond issue, along with accumulated cash reserves and contributions from donors, sets the stage for the University to move forward with the implementation of Phase I of the Master Plan. Visitors to the campus will soon see evidence of these improvements as a new streetscape along Ramsey Street takes shape, the next generation of trees on Lowdermilk
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Drive and Joe Stout View Drive are enhanced, the north entrance to the Trustees Building is extended, and the Davis Memorial Library is totally renovated. Methodist University’s North Carolina Capital Facilities Finance Agency revenue bonds went on sale Aug. 16. One of the key rating drivers listed by Fitch was the University’s stable operating characteristics, including a historically stable operating performance, growing enrollment and adequate coverage of existing debt obligations. About $7 million of the funds is earmarked to refinance existing debt at a lower, tax-exempt rate. According to Vice President for Business Affairs Gene Clayton, the University’s attainment of its own investment rating, rather than relying on a bank-backed bond, indicates that Methodist has a stronger financial position. “There are not many private universities and colleges in North Carolina that have an investment-grade rating,” Clayton said.