Waiver allowed on PLU bond covenants

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.

croberts@thenewstribune. com

This story was originally published January 3, 2016 at 9:28 AM with the headline "Waiver allowed on PLU bond covenants."