Regents approve UH West O'ahu loan
News Release from University of Hawaiʻi September 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
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.