Business
Grand Canyon University Refinances Loan Held By GCE
Move takes advantage of lower interest rates, will result in significant interest cost savings PHOENIX, Dec. 9, 2021 /PRNewswire/ -- Grand Canyon University
About this update from Grand Canyon Education, Inc.
[{"type":"text","content":"Move takes advantage of lower interest rates, will result in significant interest cost savings\n\n\nPHOENIX, Dec. 9, 2021 /PRNewswire/ -- Grand Canyon University (GCU) has successfully completed a $1.2 billion bond offering to refinance the remaining balance of the secured note that was issued in 2018 as part of the purchase of the University related to its transition back to 501(c)(3) tax-exempt nonprofit status and additional loans made to acquire capital assets after the transaction closed.\n\n \n \n \n \n \n \n\n \nThe initial interest-only note, which was due in 2025, allowed GCU to purchase all of the tangible and intangible assets comprising the University's campus from Grand Canyon Education (GCE). Refinancing the note early allows GCU to take advantage of today's lower interest rates and realize substantial interest cost savings.\n\"The scope of this refinancing is pretty significant in the higher education bond market and speaks to GCU's solid financial performance in the three years since reverting to our historical nonprofit status,\" GCU President Brian Mueller said. \"This will help in our efforts to continue to freeze tuition costs on campus, which we have done for 14 straight years, while also continuing to invest in academic infrastructure in order to keep up with the growth of the University.\"\nGCU's financial model has allowed it to invest $1.6 billion into academic infrastructure over the past decade without relying on state taxpayer subsidies or passing those costs on to students with tuition increases on its Phoenix campus. GCU's 270-acre campus has been rated as high as No. 7 in the country by niche.com. Affordable tuition levels have also resulted in graduates who take on less debt than the average at public universities with student loan default rates well below the national average.\nJohn Augustine, who leads the Higher Education and Academic Medical Center sectors in the US Municipal Finance team at Barclays, said the offering generated significant interest from close to 30 investors, including major insurance companies, bond funds and investment managers. Barclays served as sole book-running manager on the offering.\n\"Grand Canyon University's mission to make private, Christian education affordable and accessible to high achieving students, regardless of economic status, was received well by investo...