Trustees consider refinance of bond indebtedness

The Board of Trustees for Adams State University meet with Porter Scholar students for lunch between sessions on Friday./Courtesy photo by Linda Relyea

ALAMOSA — Adams State University trustees heard its options for refinancing a portion of the university’s existing capital construction debt during its meeting Friday.

The trustees also received a presentation from Moody’s Investors Service on the university’s current A3 bond rating and how the university can improve the rating through higher student enrollment and substantially stronger operating support from the Colorado legislature. (See more complete story in Wednesday's Courier.)

After hearing options from North Slope Capital Advisors on restructuring $34 million of existing bond debt, the trustees agreed to consider its refinance options at a special meeting in January. A refinance would yield Adams State a lower interest rate using the state of Colorado’s stronger bond rating, and continue to improve its operating cash flow.

The trustees were heartened by the improved financial position of Adams State after reviewing the current fiscal year performance, and see a bond refinance as another way to improve the financial position of the university.

“This one of the more encouraging financial statements in my time on the board,” said Cleave Simpson, chair of the Adams State Board of Trustees.

In other items:

The trustees agreed to work directly with the city of Alamosa’s public works division to ensure the city has access it needs to maintain property Adams State owns along the Rio Grande River corridor. The city of Alamosa had requested that ownership of the property be transferred to the city, but the trustees were not ready for that. Instead, Adams State said it would continue to ensure the city has access to the property for maintenance purposes. The trustees also committed to working with Alamosa as the city continues to expand the Rio Grande trail system.

An Adams100 Commission was formally established as the official planning body to support events and initiatives associated with the 100-year anniversary of Adams State’s founding in 1921. The Ttrustees supported a strategy to create the commission and establish a membership comprised of Adams State employees, alumni and San Luis Valley residents.