Debt management

The purpose of this policy is to provide a framework by which decisions will be made regarding the use of debt to finance capital programs at Lynn University.

To fulfill its mission and strategic plans, Lynn University will need to make capital investments, driving capital decisions that impact Lynn University’s credit. Appropriate financial leverage serves a useful role and may be considered a long-term component of Lynn University’s balance sheet. Just as investments represent an integral component of Lynn University’s assets, debt may be viewed to be a continuing component of Lynn University’s liabilities. Debt, especially tax-exempt debt, provides a low-cost source of capital for Lynn University to fund capital investments to achieve its mission and strategic objectives. Debt management operating guidelines and management policies (e.g., Post-Issuance Tax Exempt Bond Compliance Policy) as applicable must be approved by the Board of Trustees and followed when decisions are made regarding the use of debt to finance particular capital projects.

Debt—a product that permits the University to externally finance a capital project, and for which the college or an affiliate of the University is ultimately responsible for repayment.

Capital Project—any expenditure that can be capitalized on the University’s balance sheet. This includes, but is not limited to, the construction or renovation of existing buildings, the acquisition of capital properties including furnishings, fixtures, machinery and equipment, the acquisition, installation and implementation of information technology, and the soft costs of implementing any capital projects.

Not Applicable.

To learn more about this policy or the supporting procedures, please contact Finance.