Effective Through Fiscal Year 2024:
Grandfathered Long-Term Debt:
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Quarterly principal and interest payments each 11/1, 2/1, 5/1, 8/1.
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Fixed schedule (prepayment depends on prevailing market conditions – premium likely).
Equipment Loans:
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Quarterly principal and interest payments each 11/1, 2/5, 5/1, 8/1.
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Interest rate equal to average CP rate paid by System plus a Short-Term Premium of 25bps.
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3 to 10 year repayment terms.
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Prepayable at par with one week’s notice in writing to the Office of Finance
Short-Term Capital (interim financing):
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Quarterly interest payments each 11/1, 2/1, 5/1, 8/1.
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Interest rate equal to average CP rate paid by System plus a Short-Term Premium of 25bps.
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No principal repayment. Balance based on actual monthly construction requisitions.
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Conversion to long-term mode upon reaching Substantial Completion (including one-quarter grace period).
Long-Term Capital:
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Quarterly principal and interest payments each 11/1, 2/5, 5/1, 8/1.
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Principal amortized to create level debt service based on Long-Term Rate of 3.75%.
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10 to 30 year repayment terms – should approximate life of project being financed.
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Prepayable at par with one month’s notice in writing to the Office of Finance.
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For projects that will not comply with IRS private business use restrictions, an additional Flexibility Premium of 0.50% is added to the Long-Term Rate to cover the added cost of taxable debt.
ILP Loan Rate History:
| Fiscal Year | Equipment Loan Premium | Short-Term Capital Premium | Long-Term Capital | Flexibility Premium |
|---|---|---|---|---|
| 2016 | 0.75% | 0.75% | 4.50% | 0.75% |
| 2017 | 0.75% | 0.75% | 4.50% | 0.75% |
| 2018 | 0.75% | 0.75% | 4.25% | 0.50% |
| 2019 | 0.50% | 0.50% | 4.25% | 0.50% |
| 2020 | 0.50% | 0.50% | 4.00% | 0.50% |
| 2021 | 0.25% | 0.25% | 4.00% | 0.50% |
| 2022 | 0.25% | 0.25% | 3.75% | 0.50% |
| 2023 | 0.25% | 0.25% | 3.75% | 0.50% |
| 2024 | 0.25% | 0.25% | 3.75% | 0.50% |
