GCU refinances partial loan held by Grand Canyon Education
(October 29, 2021) – Earlier today, Grand Canyon University (GCU) refinanced $ 500 million of the guaranteed note held by Grand Canyon Education, Inc. (GCE). The note was issued in 2018 as part of the University’s return to tax-exempt 501 (c) (3) nonprofit status and allowed the University to purchase all of the tangible and intangible assets comprising the campus of GCE University. Refinancing allows GCU to capitalize on today’s low interest rate environment and to achieve significant savings on interest charges.
The ability to refinance the note is a reflection of the University’s strong growth and financial performance in the three years since its return to its historic nonprofit status. Recent audited financial highlights include:
- From the closing of the acquisition on July 1, 2018 until June 30, 2021, GCU has generated $ 341 million in operating cash.
- GCU increased its net assets to $ 443 million as of June 30, 2021.
- GCU closed fiscal 2021 with more than $ 407 million in cash.
Thanks to its strong financial position, GCU has been able to continue to invest in its students, employees and community:
- From the closing of the acquisition on July 1, 2018 until June 30, 2021, the University has reinvested $ 368 million in new educational infrastructure.
- Despite a once-in-a-century pandemic that has wreaked havoc at many higher education institutions across the country, GCU continued to freeze tuition fees at its Phoenix campus for the 13th year in a row.
- During the pandemic, GCU increased enrollments by around 14% while avoiding layoffs or pay cuts for faculty or staff, creating 466 new faculty and staff jobs on campus in 2020 and ensuring that all faculty and staff receive salary increases.
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About Grand Canyon University: Grand Canyon University was founded in 1949 and is Arizona’s first private Christian university. GCU is regionally accredited by the Higher Learning Commission and offers 270 academic programs, accents and certificates for traditional undergraduates and working professionals. The University’s curriculum emphasizes interaction with classmates, both in person and online, and individual attention from instructors while merging academic rigor with Christian values to help students. students to find their purpose and to become competent and caring professionals. For more information, visit gcu.edu.