Phoenix-based Grand Canyon University has completed a substantial refinancing operation, with Colliers International Mortgage Advisory LLC orchestrating the deal. The university has successfully refinanced $520 million in bonds, utilizing the Industrial Development Authority of the County of Maricopa Education Bonds, this move effectively consolidates previous obligations and extends certain debt maturities to 2029. The transaction cleared two bridge loans that were arranged in October, as well as paying off the university's credit line, according to a report by ABC15.
The financial strategy hinges on 3(a)(2) bond financing, and represents a partial refinance of the bonds originally issued in 2021. GCU's President, Brian Mueller underscores the significance of this move. "The scope of this refinancing is pretty significant in the higher education bond market and speaks to GCU’s outstanding financial performance and strong student outcomes in the six years since reverting to our historical tax-exempt Arizona nonprofit status," Mueller said, as Colliers reported.
The intricacies of the deal caught the attention of serious investors, buoyed by the fusion of Grand Canyon University's education platform and its substantial real estate holdings. Bob Kline, Colliers' Western Debt, Equity & Structured Finance Leader and Managing Director, noted the attractiveness of the financing to institutional bond buyers. "This bond financing could not have been executed without GCU’s innovative approach to higher education," Kline stated in the Colliers announcement.
Colliers' Phoenix team leading the operation included Robert Kline, backed by the proficiency of Vice Chairman and National Director of the Education Advisory Group, Todd Noel, and Executive Vice President, Mindy Korth. The Goldman Sachs Higher Education group's effort, was led by John Stevenson, the Head of Higher Education, and Vice President Mark Somers. Colliers, a professional services company with a history of about 30 years, reports annual revenues over $4.5 billion and manages $99 billion of assets, as their corporate website indicates.
