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Kovalchick Complex Completes Indebtedness Payment

Posted on 7/24/2014 6:23:21 PM

As of June 30, 2014, IUP has completed a $28.6-million payment for indebtedness related to the construction and bond financing of the Kovalchick Convention and Athletic Complex. This transaction was effected through repurchase and internally defeased efforts.

According to Cornelius Wooten, IUP vice president for Administration and Finance, the successful completion of this financial transaction resulted in the removal of this indebtedness from the university’s financial statements, and the university is no longer obligated for this bond indebtedness. In addition, IUP achieved ultimate cost avoidance, or interest savings, estimated at $15.3 million.