You are receiving this email as part of a free information service from University Business Magazine. Low Interest Rate Environment – Opportunity for Borrowers Higher education borrowers have opportunities in this low interest rate environment by issuing refunding bonds, which allows borrowers to issue new debt and use the proceeds to prepay older, higher-rate debt on the call date. A growing number of issuers are turning to private placements to ease the difference between the cost of issuance and investment rates. Private placements – an alternative to public sales – offer flexibility by avoiding the time-consuming disclosure documents required when publically offering bonds.  An advantage of using private placements is it removes the expenses associated with credit ratings, bond insurance and printing. Private placements can also provide a valuable alternative known as the draw feature, which is an efficient and cost-saving measure. With the draw feature, the initial draw pays for the issuance costs, and the remaining bond proceeds are paid to the issuer only when needed, effectively locking in the low-rate and avoiding negative cost of carry. Privately-placed, delayed draw bonds are a simple solution that bypasses the complicated and expensive swaps and derivatives of the public market.     To learn more about the opportunities for borrowers in today’s market, click here. At UMB, our Investment Banking Division provides underwriting and private placement services to help higher education institutions advance their goals.* Visit umb.com/PublicFinance to learn more.       *Products offered through UMB’s Investment Banking Division are: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED. The information and opinions expressed in this message are solely those of the author and do not necessarily state or reflect the opinion of UMB or UMB Financial Corporation.  This email blast is sponsored by UMB Bank's Institutional Asset Management group   This e-mail was sent to: [EMAIL]. One Click Unsubscribe | Manage My Subscriptions Copyright University Business, 4‌88‌ Main Ave., Norwalk, CT, 06851