Grand Canyon University completed a $1.2 billion bond offering Thursday to refinance a loan held by its former parent, Grand Canyon Education Inc.
In July 2018, when GCE sold off the GCU assets for $853.1 million, GCE provided an interest-only loan to GCU to finance that acquisition as part of an effort for GCU to revert back to its original nonprofit status.
While that GCE note isn't due until 2025, the bond offering takes advantage of lower interest rates and will save GCU millions of dollars, said Brian Mueller, president of GCU and CEO of GCE.
"Their interest rate was almost two points less," Mueller told the Phoenix Business Journal, which will save millions of dollars a year.
When Mueller was talking to investors, he noticed they were looking to invest in organizations with not only a sustainable financial model but a commitment to greater good initiatives.