Pacific Lutheran University has received a waiver from Assured Guaranty Corp, the bond insurer, concerning requirements attached to a $54 million Washington Higher Education Facilities Authority bond agreement.
“We did get a waiver, as expected, for the liquidity covenant on the 2006 bonds,” reported university spokeswoman Donna Gibbs on Monday.
The rating service Standard & Poor’s late last year downgraded the bonds to BBB- from BBB, noting a “weakened overall financial profile.”
The university replied at the time that the university’s recent financial results generated a surplus and that enrollment had exceeded expectations.
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