FY 2005 - University of Missouri System

N otes to Combined Financial StatementsF o r t h e y e a r s e n d e d J u n e 3 0 , 2 0 0 5 a n d 2 0 0 421. SUBSEQUENT EVENTSOn July 1, 2005, the University sold $80,000,000 of capital project notes at an effective interest rate of 2.6%. The noteswill be repaid in full by June 30, 2006. Proceeds from the issuance of the capital project notes will be used to fundvarious construction projects of the University.In October 2005, the Board of Curators approved the issue of new bonds. In January 2006, the University expects toissue System Facilities Revenue Bonds, Series 2006, in the amount of $350 million. Proceeds from the issuance of theSeries 2006 bonds will be used to finance construction of new housing facilities and renovations and improvements toexisting housing facilities on the Columbia and St. Louis campuses and various other projects, advance refunding ofpreviously issued series of revenue bonds, payment of capitalized interest on a portion of the Series 2006 Bonds, andpayment of costs of issuance of the Series 2006 Bonds.On October 3, 2005, the Circuit Court of St. Louis County, Missouri approved the settlement of a case filed in January1998 relating to charging tuition by the University for undergraduate education, as discussed in Note 14. The judgment,order and decree (the “order”) which approved this settlement was scheduled to become final 30 days after the date ofthe order and an additional 10 days thereafter for possible notice of appeal. Any appeal of the order was required to befiled within this 30-day time period or within 10 days after the date on which the order becomes final. On November7, 2005, within the time period for filing a timely Notice of Appeal, one of the class members who objected to thesettlement and sought to intervene filed a Notice of Appeal. On December 22, 2005, the appeal was dismissed withprejudice and the litigation has reached a conclusion. The University will proceed to establish the scholarship fundcalled for in the settlement agreement.*******2 0 0 5 F i n a n c i a l R e p o r t : U n i v e r s i t y o f M i s s o u r ia c o m p o n e n t u n i t o f t h e S t a t e o f M i s s o u r i 53