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Apogee Stadium Debt Refinance

UNTflyer

By UNTflyer
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UNTflyer Apprentice

UNTflyer

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Interesting. UNT is considering refinancing the CP that was used to partially pay for stadium construction into long-term debt. Looks to me that the intent is to extend the Athletic Fee. We talked about this when the bill was passed in Austin, and that the University would have many options to keep the Athletic Fee in place indefinitely.

Projects utilizing interim commercial paper that will require long term debt support:

Football Stadium at UNT ($27,690,000).

The original project budget for the UNT football stadium was set at an amount not to exceed $78 million. At the March 2011 Board of Regents meeting an order was approved to increase the budget to $79,011,000. The University of North Texas System (UNTS) previously issued $48 million in long term debt with the Series 2009A bond issue. The remaining $30 million was financed using commercial paper (CP), of which $27.69 million is currently outstanding. This issuance will refund $27.69 million of CP to RFS fixed rate long term debt. The estimated annual additional debt payment depending on the blend of taxable and non-taxable debt will range from $1.76 million to $1.88 million and will be funded from donations and/or Athletic operations, with debt service for the total project not to exceed 50% from the student Athletic fee.

Edited by UNTflyer
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UNTFan23 Community Regular

UNTFan23

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I suspect they are refinancing the debt to get a better rate. Commercial paper tends to have a higher interest rate and is generally used for short term financing compared to a fixed rate bond, which is what I believe RFS represents, and is used for long term capital expenditures.

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houstonmeangreen Newbie

houstonmeangreen

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Interesting. UNT is considering refinancing the CP that was used to partially pay for stadium construction into long-term debt. Looks to me that the intent is to extend the Athletic Fee. We talked about this when the bill was passed in Austin, and that the University would have many options to keep the Athletic Fee in place indefinitely.

Projects utilizing interim commercial paper that will require long term debt support:

Football Stadium at UNT ($27,690,000).

The original project budget for the UNT football stadium was set at an amount not to exceed $78 million. At the March 2011 Board of Regents meeting an order was approved to increase the budget to $79,011,000. The University of North Texas System (UNTS) previously issued $48 million in long term debt with the Series 2009A bond issue. The remaining $30 million was financed using commercial paper (CP), of which $27.69 million is currently outstanding. This issuance will refund $27.69 million of CP to RFS fixed rate long term debt. The estimated annual additional debt payment depending on the blend of taxable and non-taxable debt will range from $1.76 million to $1.88 million and will be funded from donations and/or Athletic operations, with debt service for the total project not to exceed 50% from the student Athletic fee.

so what happened to the 18million rec'd in cash from Apogee for the naming rights. What about other donations...what happened to that cash?

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Mean Green 93-98 Grand Master

Mean Green 93-98

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Didn't say it was....reported to be $20 mil of which $18mil was paid in cash up front.

I don't think that's right, although I don't have a link handy. I thought it was about 50/50 cash/services, and maybe $1 million was cash up front.

EDIT: Well, here's a link: http://blogs.star-telegram.com/dfwjobs/2011/09/unt-discloses-apogee-stadium-football-naming-rights-contract.html

Apogee . . . will pay $11.8 million of the $20 million deal in cash. The remaining $8.29 million will be in-kind services, according to a copy of the contract the university released upon a Texas Open Records request from the Star-Telegram.

Under the deal, Apogee, manager of the campus network, will be responsible for increasing bandwidth every year of the naming rights deal beyond what it's already required to do under its management contract with the school.

Although it still doesn't say how much was paid up front, it obviously wasn't anywhere near $18 million.

Edited by Mean Green 93-98
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UNTFan23 Community Regular

UNTFan23

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I don't think that's right, although I don't have a link handy. I thought it was about 50/50 cash/services, and maybe $1 million was cash up front.

EDIT: Well, here's a link: http://blogs.star-telegram.com/dfwjobs/2011/09/unt-discloses-apogee-stadium-football-naming-rights-contract.html

Although it still doesn't say how much was paid up front, it obviously wasn't anywhere near $18 million.

$11 million is a lot to drop all at once. It could hamstring Apogee on future project expenditures. It is likely a payment plan.

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