Bradley University will pay a higher interest rate and need to have more money on hand to cover debt after violating the bond covenants on some $17.1 million worth of borrowing last year. That's the underlying story behind last year's academic cuts on the Hilltop. WCBU obtained information on the covenant violation from the Illinois Finance Authority via Freedom of Information Act (FOIA) requests. Documents filed with the Illinois Finance Authority on Jan. 17 said the university violated the Series 2021B continuing covenant agreement with PNC Bank for the year ending May 31, 2023. The specific provision breached required the university to maintain a debt service coverage ratio of not less than 1.25 to 1.0, with one being the minimum net operating income required to service the debt annually.
