Regents approve UH West O'ahu loan

Posted: Sep 5, 2012

 

The University of Hawai'i Board of Regents today approved a short term cash advance to the UH West O'ahu campus as a bridge until its final package of financing, an $18 million loan from a Hawai'i limited partnership associated with CanAm Enterprises, LLC, is delivered.

 

The UH West O'ahu campus had a construction budget of approximately $173,000,000. The financing package assembled to build the campus included:

 

            General Obligation Bonds: $91 million

            Revenue Bonds: $68 million and

            Loan provided by the CanAm Group: $18 million

            Totaling $177,000,000

 

The CanAm loan funds are currently in escrow, awaiting final approval by the US government, and were expected to be released this summer. The new projected release date is October, 2012.

 

The internal advance for a term of up to six (6) months will come from within the University Bond System, which is cash in excess of immediate requirements that would normally be invested in bank certificates of deposit or other investments. UHWO will pay interest on the $15,000,000 at the same rate as the average rate of earnings in the Bond System’s equivalent maturing investments. The interest will be due at the time of the repayment of the advance.