A meeting of the Finance Committee of the Board of Trustees convened at 9:17 a.m. on Friday, February 5, 2021, on the Purdue University campus in West Lafayette, Indiana. The meeting was held in Stewart Center, Room 214, to allow for social distancing amid the COVID-19 pandemic. Restrictions were placed on the number of observers in the room, and other members of the media and the public who wished to observe the meeting virtually were provided such instructions. Everyone in the room was wearing a mask.

All committee members were present in person or, where specifically noted, by means of electronic communication pursuant to the Electronic Meeting Policy: Don Thompson, chair (virtually); Sonny Beck; Malcolm DeKryger; and Michael Klipsch. All other trustees were present: Michael Berghoff; JoAnn Brouillette; Vanessa Castagna; Theresa Carter (virtually); Gary Lehman; and Noah Scott.

Officers and administrators in attendance were: Mitch Daniels, president; Jay Akridge, provost and executive vice president for academic affairs and diversity; Chris Ruhl, chief financial officer and treasurer; Jim Almond, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; Trent Klingerman, deputy general counsel (virtually); and Janice Indrutz, corporate secretary and senior executive assistant to the Board.

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to approve the minutes of its meeting convened on December 4, 2020.

II. APPROVAL TO RESTRUCTURE/REFINANCE CERTIFICATES OF PARTICIPATION

Treasurer Ruhl requested approval to restructure and refinance a portion of the outstanding debt which Intercollegiate Athletics owed to the Ross-Ade Foundation. He explained that Certificates of Participation were the legal structure by which the Ross-Ade Foundation had issued tax exempt debt to fund capital improvements for Mackey Arena, Ross-Ade Stadium, Kozuch Football Performance Complex, and Bittinger Softball Stadium; the university then leased those assets from the Ross-Ade Foundation, with lease payments made by Intercollegiate Athletics. Mr. Ruhl indicated that $31,000,000 of the $144,000,000 outstanding Certificates of Participation were variable rate instruments with interest rates that reset weekly, and he discussed three primary goals for restructuring them: (1) eliminate the risk of rising interest rates for the variable rate debt; (2) level out the debt service; and (3) provide Intercollegiate Athletics with near-term cash flow savings. Mr. Ruhl also outlined the restructure process and timeline.

Mr. Ruhl informed the Committee that Mr. Mike Bobinksi, vice president and director of Intercollegiate Athletics, had acted very responsibly with regard to the financial hardship faced by Intercollegiate Athletics as a result of the ongoing COVID-19 pandemic. Trustee Klipsch thanked Mr. Ruhl and his team for their efforts to find creative ways for Intercollegiate Athletics to navigate the very large deficit created by the pandemic. In response to a question from Trustee Klipsch, Mr. Ruhl explained the high debt service projected for 2028. Trustee Thompson remarked that it was extremely astute to capture the markets at the current all-time lows and better position the future leadership and financial management of the university.

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval to refinance and restructure the Certificates of Participation. Supporting materials were filed with the minutes.

III. ADJOURNMENT

By consent, the meeting adjourned at 9:25 a.m.