The University of Hawaiʻi Board of Regents approved a short term cash advance on September 5 to the University of Hawaiʻi—West Oʻahu campus as a bridge until its final package of financing, an $18 million loan from a Hawaiʻi limited partnership associated with CanAm Enterprises, LLC, is delivered.
UH West Oʻahu had a construction budget of approximately $173 million. The financing package assembled to build the new Kapolei campus totaled $177 million and included:
- General Obligation Bonds: $91 million
- Revenue Bonds: $68 million
- Loan provided by the CanAm Group: $18 million
The CanAm loan funds are currently in escrow awaiting final approval by the federal 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 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.
UH West Oʻahu will pay interest on the $15 million 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.