new infrastructure within a 2.5-year program
under a fixed price, date-certain contract. Also,
Edgmoor will provide certain operations and
maintenance services under a separate contract
for 15 years. The project structure that we
helped achieve provided access to the lowest
possible cost of financing, allowed Kansas
University to negotiate all aspects of the design
and construction with a single entity, and gave
Kansas University a high degree of control and
flexibility over the operations and maintenance
period.
of all debt service under a hell-or-high-water arrangement that leaves bond holders
completely insulated from construction and operations risk. PFAL helped to structure
the contracts that governed this arrangement and strategized the approach to the rating
agencies.
University, a significant and unusual achievement, which helped to reduce the cost of
financing. The 30 year bonds were rated Aa2 by Moody's and have an average life of just
under 20 years. The bonds were sold at a favorable all-in interest rate of 3.76%. During the
course of our work, PFAL identified over $30 million in cost savings and cost preservation.
the University of Kansas's vision to a reality and we look forward to being part of more
ground-breaking projects.
project, the Edgemoor-led
developer team will provide
construction and operations
services for the planned 40-
acre site which will include a
285,000 square feet academic
integrated science facility, a
26,500 square feet student
union, 1,200 beds of student
housing in three buildings, and
approximately 2,000 parking
spaces. The project also will
include a central plant facility,
a 595 space parking structure,
and the necessary utility and
transportation infrastructure
to support the project