Higher education officials will allow Mississippi State University to enter the "commercial paper" market to obtain $50 million for future construction projects.
The commercial paper market is short-term IOUs that companies sell to meet cash-flow needs. Issuing commercial paper is a way for companies to borrow money for short periods of time to finance their day-to-day operations. Most commercial paper is unsecured debt, but some of it is backed by assets such as mortgages and credit card debt.
The Clarion-Ledger reports (http://on.thec-l.com/xe6HAq ) that MSU must get further board approval for each specific project where it would be used - for example, in the plans to improve and expand the Davis Wade Stadium.
MSU President Mark Keenum says the school will save millions of dollars in interest costs.
Information from: The Clarion-Ledger, http://www.clarionledger.com
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