The HLC gets a refi
University administrators say move could save $300,000 a year.
February 28, 2018
MSU Denver is refinancing the Hospitality Learning Center, and it could save the University up to $300,000 per year.
Administration and Finance is working on a deal to lock in a long-term interest rate of 3 percent on the HLC’s bonds. Currently the rate is 4.4 percent.
Steve Kreidler, vice president of administration and finance, said the transaction — while complex — is like refinancing a home mortgage.
“Any time we have a bond come up for refinancing we ask if we can save money, just like a home owner,” Kreidler said.
The new rate, Kreidler said, could mean up to $300,000 in savings for the HLC, which could be used in a number of ways—from funding scholarships to procurement.
The plan received the endorsement of the MSU Denver Board of Trustees at its February meeting and the HLC@Metro Board, which oversees the HLC.
“If you can lock in a rate of 3 percent, you take it,” Kreidler said. “That’s a historically low borrowing amount.”