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Current ILP Loan Terms

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Effective Through Fiscal Year 2024:

Grandfathered Long-Term Debt:

  • Quarterly principal and interest payments each 11/1, 2/1, 5/1, 8/1.

  • Fixed schedule (prepayment depends on prevailing market conditions – premium likely).

 

Equipment Loans:

  • Quarterly principal and interest payments each 11/1, 2/5, 5/1, 8/1.

  • Interest rate equal to average CP rate paid by System plus a Short-Term Premium of 25bps.

  • 3 to 10 year repayment terms.

  • Prepayable at par with one week’s notice in writing to the Office of Finance

 

Short-Term Capital (interim financing):

  • Quarterly interest payments each 11/1, 2/1, 5/1, 8/1.

  • Interest rate equal to average CP rate paid by System plus a Short-Term Premium of 25bps.

  • No principal repayment. Balance based on actual monthly construction requisitions.

  • Conversion to long-term mode upon reaching Substantial Completion (including one-quarter grace period).

 

Long-Term Capital:

  • Quarterly principal and interest payments each 11/1, 2/5, 5/1, 8/1.

  • Principal amortized to create level debt service based on Long-Term Rate of 3.75%.

  • 10 to 30 year repayment terms – should approximate life of project being financed.

  • Prepayable at par with one month’s notice in writing to the Office of Finance.

  • For projects that will not comply with IRS private business use restrictions, an additional Flexibility Premium of 0.50% is added to the Long-Term Rate to cover the added cost of taxable debt.

 

ILP Loan Rate History:

Fiscal Year Equipment Loan Premium Short-Term Capital Premium Long-Term Capital Flexibility Premium
2016 0.75% 0.75% 4.50% 0.75%
2017 0.75% 0.75% 4.50% 0.75%
2018 0.75% 0.75% 4.25% 0.50%
2019 0.50% 0.50% 4.25% 0.50%
2020 0.50% 0.50% 4.00% 0.50%
2021 0.25% 0.25% 4.00% 0.50%
2022 0.25% 0.25% 3.75% 0.50%
2023 0.25% 0.25% 3.75% 0.50%
2024 0.25% 0.25% 3.75% 0.50%