MISSOULA, Mont. (AP) — The University of Montana is improving its financial picture by reducing the interest rate on some of its debt.
The Missoulian reports the university plans to issue $142 million in bonds to lower the interest rate on $92 million in debt and to pay for other improvements.
With the new bonds, the university expects to spend $4.4 million on debt service in fiscal year 2020, $8.1 million in 2021 and $8.7 million a year through 2050. For each of the last five fiscal years, UM has paid between $13 million and $16 million on debt service and expected to spend between $14.1 million and $15.5 million through 2024.
Paul Lasiter is UM's vice president for administration and finance. He says reducing debt payments will allow UM to invest in student housing, dining and recreational facilities and improve energy efficiency.
Information from: Missoulian, http://www.missoulian.com