Strategic Debt Management

Interest Rate Swaps

In order to protect against the potential of rising interest rates and diversify the overall debt portfolio, the University has entered into several interest rate swaps. The University’s swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in bonds payable. The terms of the outstanding swaps are as follows.

• Counterparty: Bank of America, N.A.
  Original notional amount: $24,655,000
  Effective date: 6/20/2003, Termination date: 10/01/2027
  Fixed rate paid: 3.54%
  Variable rate received: 100% BMA from 6/20/2003 to 7/1/2006 converting to 75% of 1mo LIBOR from 7/1/2006 to 10/1/2027.
  
  
• Counterparty: JPMorgan Chase Bank, N.A.
  Original notional amount: $50,000,000
  Effective date: 9/1/2008, Termination date: 10/1/2026
  Fixed rate paid: 3.862%
  Variable rate received: 100% BMA from 9/1/2008 to 3/1/2017 converting to 68% of 1mo LIBOR from 3/1/2017 to 10/1/2026
  
  
• Counterparty: JPMorgan Chase Bank, N.A.
  Original notional amount: $22,382,500
  Effective date: 3/1/2017, Termination date: 10/1/2026
  Floating rate paid: 68% of 1mo LIBOR
  Floating rate received: 62.29% of 5yr ISDA swap rate