Notes to Financial Statements

As of June 30, 1998

Note 4: Long-Term Debt

As of June 30

Interest Rate
Maturity
1998
1997

(in thousands)

Plant Funds

Revenue Bonds Medical Center Series 1993A

4.0% to 5.2%

1999-2015

$ 40,175

$ 43,445

Medical Center Series 1989E

6.0% to 7.0%

2001-2013

55,875

55,875

University of Virginia Series 1995A

variable

2020

5,340

6,100

University of Virginia Series 1993B

4.25% to 5.375%

1999-2020

55,620

57,360

Clinch Valley College Series 1973B

5.6% to 5.875%

1999-2011

310

325

Commonwealth of Virginia Bonds

3.8% to 9.25%

1999-2016

59,861

64,192

Notes Payable to VCBA

3.75% to 5.0%

1999-2017

4,600

--

Higher Education Equipment Trust Fund Leases Payable

3.85% to 5.0%

1999-2003

20,394

18,699

Other

various

1999-2003

322

725

Total

$ 242,497

$ 246,721



Long-term debt matures for each of the next five years and in the aggregate (in thousands):

1998-1999

$ 14,486

1999-2000

13,840

2000-2001

14,463

2001-2002

13,274

2002-2003

11,131

Later years

175,303

Total

$ 242,497

On February 26, 1998, the Commonwealth of Virginia, on behalf of the University of Virginia, issued $8,012,000 of Series 1998 Refunding Bonds with interest rates ranging from 3.5% to 5.0% to refund $7,375,000 of outstanding 1992 Series A, 1992 Series C, 1992 Series D, and 1994 bonds with interest rates ranging from 4.6% to 6.0%. Though the refunding resulted in an accounting loss of $637,000 for the year ended June 30, 1998, the University in effect reduced the aggregate debt service obligation by $485,000 over the next fifteen years and obtained an economic gain (difference between the present values of the old and new debt service) of $368,000.

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Note 14

Financial Report

Notes