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Action Item 6 – Commercial Paper Program, UM

Action Item 6 – Commercial Paper Program, UM. University of Missouri System Board of Curators June 16, 2011 FINANCE COMMITTEE. b. Commercial Paper Program. One of the primary purposes of commercial paper is to serve as a flexible source of interim financing.

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Action Item 6 – Commercial Paper Program, UM

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  1. Action Item 6 – Commercial Paper Program, UM University of Missouri System Board of Curators June 16, 2011 FINANCE COMMITTEE b

  2. Commercial Paper Program • One of the primary purposes of commercial paper is to serve as a flexible source of interim financing. • A commercial paper program is established with a maximum size and the University can issue short term debt under the program up to the maximum size. • Commercial paper programs are fairly common at most major universities • Borrowing costs under a commercial paper program are currently less than 0.25% c

  3. Commercial Paper Program • Key Benefits • Commercial paper can enable projects to be financed as needed rather than waiting for a critical mass of projects to be bond financed (any debt financed projects would still require Board approval) • An available commercial paper program can help strengthen an institution’s ability to effectively manage liquidity risk d

  4. Commercial Paper Program • Management requests Board approval to pursue the establishment of a commercial paper program • Management would then work with our financial advisor, Prager, Sealy & Co., to tailor a program suitable for the University • Formal approval would still be required by the Board once a specific program recommendation is presented to the Board e

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