The Arkansas Higher Education Coordinating Board has approved the sale of $19.6 million of housing and student revenue bonds by the Arkansas State University Board of Trustees.
The proceeds will fund construction of four 20-bed sorority houses, two 12-bed sorority houses, and a 100-bed hall for the school’s honors program.
In addition , a new heating and air conditioning system will be installed at the 50-year-old Kays Hall, a co-ed dormitory.
Residents must vacate 19 houses on the Jonesboro campus by the end of March. The houses will be demolished to make room for the new university facilities.
An economic analysis of the bond proposal by the higher education board estimated annual debt service of $1.2 million on the 30-year bonds at an assumed interest rate of 5%.
The school will also refund $8.2 million of outstanding student fee bonds with the upcoming issuance.
Arkansas State University’s $194 million of outstanding debt is rated A1 by Moody’s Investors Service.