HARRISBURG, Pa. (WHTM) -- A missed monthly bond payment disclosed Friday by the Harrisburg University of Science and Technology is not a default on the bonds, the university told abc27 News Wednesday morning.
"Under the loan agreement, the university is to make monthly transfers in anticipation of the semi-annual bond payments," Jessica Warren, the university's head of communications, said in a statement. "There has not been a default on the required semi-annual payments on the bonds; the university just made one in April. This payment was duly executed as scheduled, reflecting our commitment to meeting our financial obligations."
The financing had been arranged by Dauphin County and Kansas City-based UMB Bank, according to Friday's filing.
"On May 1, 2024, the university failed to make a required monthly loan payment to the trustee
in the amount of $1,218,673.94," the disclosure read in part.
News of the missed payment was first reported by Bloomberg News.
"The university has an open and transparent partnership with the bond trustee and institutional holders," Warren said Wednesday. "This is a required standard filing that the university disclosed."
"The university remains committed to our mission and the tremendous work of our learners," Warren added.