(October 29, 2021) – Earlier today, Grand Canyon University (GCU) refinanced $500 million of the secured note held by Grand Canyon Education, Inc. (GCE). The note was issued in 2018 as part of the University’s transition back to 501(c)(3) tax-exempt nonprofit status and allowed the University to purchase all of the tangible and intangible assets comprising the University’s campus from GCE. The refinancing allows GCU to capitalize on today’s low interest rate environment and realize significant interest cost savings.
The ability to refinance the note is a reflection of the University’s strong growth and solid financial performance in the three years since reverting to its historical nonprofit status. Recent audited financial highlights include:
- From the closing of the acquisition on July 1, 2018 through June 30, 2021, GCU has generated $341 million in cash from operations.
- GCU has increased its net assets to $443 million as of June 30, 2021.
- GCU closed fiscal year 2021 with over $407 million cash on hand.
With 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 through June 30, 2021, the University has reinvested $368 million in new educational infrastructure.
- Notwithstanding a once-in-a-century pandemic that has wreaked havoc on many higher education institutions across the country, GCU has continued to freeze tuition on its Phoenix campus for the 13th consecutive year.
- During the pandemic, GCU has increased enrollment by approximately 14% while also avoiding any layoffs or pay cuts to faculty or staff, creating 466 new faculty and staff jobs on campus in 2020 and ensuring that all faculty and staff received pay raises.
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About Grand Canyon University: Grand Canyon University was founded in 1949 and is Arizona’s premier private Christian university. GCU is regionally accredited by the Higher Learning Commission and offers 270 academic programs, emphases and certificates for both traditional undergraduate students and working professionals. The University’s curriculum emphasizes interaction with classmates, both in-person and online, and individual attention from instructors while fusing academic rigor with Christian values to help students find their purpose and become skilled, caring professionals. For more information, visit gcu.edu.
