WWU Retains High Bond Rating. Western Issues $14.3 Million in Bonds to Build Residence Hall Addition

DATE: July 15, 2009 4:42:36 PM PDT

Contact: University Communications, (360) 650-3350

BELLINGHAM – While a number of colleges and universities across the country have seen their bond ratings downgraded during the current recession, Western Washington University retains its strong A2/A+ bond rating, with a stable outlook.

Earlier this month, WWU issued $14.28 million in bonds to finance construction of a new addition to the Buchanan Towers residence hall on South Campus. The net blended cost of capital, based on the A2 bond rating from Moody’s Investors Service and A+ bond rating from Standard and Poor’s Corp., was a 4.68 percent interest rate.

“This bond rating is recognition of Western’s transparent approach to budgeting and continuing strong financial position, even in the midst of a severe economic downturn,” said WWU President Bruce Shepard.

Western was the second issuer of Build America Bonds in the state, with a size of $12.835 million, with the remainder – $1.445 million – sold as regular tax exempt bonds. Build America Bonds were introduced by the federal government as part of their economic stimulus package earlier this year, to offer increased financing alternatives to public agencies. Build America Bonds are currently authorized for issuance during 2009 and 2010 only. Money to repay the bonds comes from Western’s residence hall system.

Construction work on the Buchanan Towers addition began in July. The five-story, 105-bed addition of about 37,000 square feet is being constructed on the east side of the Buchanan Towers building. Most floors are designed with five double-occupancy suites that feature a lounge/living room, a study area, bathrooms, and shared spaces including a laundry and kitchenette. The five-bed top-floor suites are designed with two-story mezzanine lofts to provide an additional single-room bed.

The first floor of Buchanan Towers is being renovated for a retail café, large public seating and lounge area with south facing windows, study spaces, computer room, indoor bike storage, office spaces and public bathrooms.

The project is designed with principles of day lighting and natural ventilation to achieve a LEED (Leadership in Energy and Environmental Design) Silver rating. LEED certification is a green building rating system developed by the U.S. Green Building Council.

Site improvements include a new WTA bus turn-out and transit shelter, reconfigured pedestrian pathways, sidewalks, and on-site bicycle parking. Rain gardens and underground vaults will be used to manage storm water control and treatment. Construction will occur adjacent to occupied portions of Buchanan Towers during the academic year with construction areas being separated by fences for safety. The project is scheduled to be completed for fall 2010 occupancy. The general contractor is Ebenal General Inc. of Bellingham.

The eight-story Buchanan Towers residence hall, originally built in 1971, currently has 424 beds and with the addition will have 529 beds.

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