Texas Southern University News October, 2011 TSU's Purchase of Student Housing and Garages Saves University Nearly $20 Million Texas Southern University's recently closed loan transaction through the Department of Education will provide significant financial benefit to the university. According to Louis Edwards, University Treasurer, the transaction funded the purchase of specific on-campus assets, including two student housing facilities consisting of University Courtyard (308 beds), Tierwester Oaks (424 beds) and East/West parking garages. The facilities were originally financed as privatized transactions that were owned by non- profit limited liability corporations. Edwards states that " Funding for the purchase was provided through a Department of Education (DOE) program specifically for historically black colleges and universities (HBCU's) that consists of a funding pool of $800 million dollars. Proceeds are used 50/50 to fund capital projects for private and state universities. The total loan amount approved by the DOE to fund the assets purchased by TSU is $68.3 million at a fixed interest rate of 2.56% for 25 years," he explains. The TSU treasurer reiterates what a tremendous deal this is for the university, stating that, "This is a tremendous financial benefit to the university because it provides permanent long term financing that replaced short-term variable rate financing from lenders that no longer provided that type of credit support. The "Net Present Value Savings" to the university is $19.1 million dollars." SANDRA M. PHOENIX Program Director HBCU Library Alliance sphoenix@hbculibraries.org<mailto:sphoenix@hbculibraries.org> www.hbculibraries.org<http://www.hbculibraries.org/> 404.592.4820 Skype:sandra.phoenix1 1438 West Peachtree Street NW Suite 200 Atlanta, GA 30309 Toll Free: 1.800.999.8558 (Lyrasis) Fax: 404.892.7879 www.lyrasis.org<http://www.lyrasis.org/> Honor the ancestors, honor the children.