Coastal Carolina University trustees announced at today's quarterly board meeting that the institution expects to save approximately $25 million by purchasing the nearby University Place residence facility from CCU's Student Housing Foundation (SHF). Previously, the SHF financed its purchase of University Place with bonds that had a higher interest rate.

The move was initiated by the University administration last year and supported by CCU board chairman D. Wyatt Henderson, who also serves on the SHF board. By issuing its own bonds and purchasing University Place, CCU, with its superior bond rating, was in a position to finance the debt at a lower rate, resulting in significant savings during the course of the payback period (set to end in 2042).

CCU will save more than originally estimated on the plan because of the strong ratings reports released in January 2015 on the $87 million student housing revenue bond issue. Fitch and Moody's, the two major credit rating agencies, assigned CCU's bond issue an "A+" and "A1" rating, respectively. Typically, the higher the bond rating, the lower the interest rate on the bond due to a lower risk perceived by the purchaser.

"The saving will directly benefit CCU students," said CCU President David A. DeCenzo. "The board has directed that student housing fees will be maintained at the present rate for the foreseeable future. The move is an example of the creative solutions that CCU has initiated to bring down the cost of education for our students."

The approximate $25 million figure equates to an average savings of almost $950,000 annually to the University's housing budget. In addition to freezing housing fees for students, this will provide needed funds for upgrading and renovating CCU's student housing properties.

The favorable bond rating is particularly auspicious in view of the fact that it comes so soon after two separate higher education revenue bond issues by CCU, which were used to finance additional housing on campus. "The A1 rating reflects CCU's capable management during a period of enrollment and expense growth," according to Moody's rating rationale. The report emphasizes the institution's enrollment stability, strong market position near Myrtle Beach, and local support from Horry County's penny sales tax for capital projects.

The board approved or renewed seven one-year property leases and authorized an increase to the approved budget for the renovation of the R. Cathcart Smith Science Building. The increase, not to exceed $650,000 (10 percent of the original cost), will allow for exterior architectural renovations matching the new science building complex.

The board also approved recommendations for faculty promotion and/or tenure. Fourteen faculty members have been promoted to associate professor with tenure: Amanda Brian, Jeffrey Case, Crystal Cox, Rajendra Dahal, Wesley Fondron, Greg Geer, Melanie James, Yun Sil Jeon, Brian Larkins, George Lyerly, Arlise McKinney, Scott Parker, Jonathan Trerise and Matthew Wilkinson.

Fourteen faculty members have been promoted to professor: Paul Clark, Florence Glaze, William Hills, Colleen McGlone, Maggi Morehouse, John Navin, Jason Ockert, Brandon Palmer, Donald Rockey, Douglas Smith, Jonathan Smith, James Solazzo, Nicholas Twigg and Yoav Wachsman. One faculty member, Michael Dunn, was recommended for tenure.

Three retiring faculty member earned the status of distinguished professor emeritus: Edgar Dyer, Michael Ferguson and Susan Webb.