Grand Canyon Education Enters Credit Agreement

TL;DR

GCPE just signed a new credit deal, potentially changing their debt structure.

AI Summary

On October 1, 2024, Grand Canyon Education, Inc. entered into a material definitive agreement, specifically a credit agreement. This agreement creates a direct financial obligation for the registrant. The filing does not specify the exact dollar amount or the other party involved in the agreement.

Why It Matters

This filing indicates Grand Canyon Education, Inc. has entered into a new credit agreement, which could impact its financial leverage and future investment capacity.

Risk Assessment

Risk Level: medium — Entering into a credit agreement can introduce financial obligations and leverage, the specifics of which are not detailed in this initial filing.

Key Players & Entities

• Grand Canyon Education, Inc. (company) — Registrant
• October 1, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $250.0 million — loans to GCU in the original amount of $250.0 million ($500.0 million in the aggregate) (each
• $500.0 million — the original amount of $250.0 million ($500.0 million in the aggregate) (each, a "Loan" and,
• $300.0 million — f the making of the Loans, GCU provided $300.0 million of its cash as collateral and the Compa
• $100.0 million — to pledge to each of MidFirst and Zions $100.0 million of the Company's available cash in orde

Filing Documents

• lope-20241001x8k.htm (8-K) — 38KB
• 0001558370-24-013107.txt ( ) — 173KB
• lope-20241001.xsd (EX-101.SCH) — 3KB
• lope-20241001_lab.xml (EX-101.LAB) — 18KB
• lope-20241001_pre.xml (EX-101.PRE) — 13KB
• lope-20241001x8k_htm.xml (XML) — 5KB

01 Entry Into a Material Definitive Agreement

Item 1.01 Entry Into a Material Definitive Agreement. Grand Canyon Education, Inc., a Delaware corporation (the "Company") is a publicly traded education services company dedicated to serving colleges and universities. The Company's most significant university partner is Grand Canyon University ("GCU"), an Arizona non-profit corporation that operates a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across ten colleges both online and on ground at its campus in Phoenix, Arizona and at eight off-campus classroom and laboratory sites. On October 1, 2024, GCU, entered into certain loan agreements (the "Loan Agreements") with MidFirst Bank, a federally chartered savings association ("MidFirst"), and Zions Bancorporation, N.A., dba National Bank of Arizona, ("NBAZ" and, together with MidFirst, the "Banks"), pursuant to which each Bank made loans to GCU in the original amount of $250.0 million ($500.0 million in the aggregate) (each, a "Loan" and, collectively, the "Loans"). The proceeds of the Loans were used by GCU to refinance outstanding bonds originally issued in 2021. The stated maturity date under the MidFirst Loan Agreement is October 1, 2026 and under the NBAZ Loan Agreement is April 1, 2025. The Loan Agreements provide for customary events of default and remedies. As a condition to the making of the Loans, each Bank required GCU to provide cash collateral in an amount equal to the principal balance of the Loan it provided. At the time of the making of the Loans, GCU provided $300.0 million of its cash as collateral and the Company offered to use some of its cash to provide the remaining collateral necessary for GCU to secure the Loans. Accordingly, on October 1, 2024, the Company entered into (i) a Pledge and Security Agreement, by and between the Company and MidFirst, and (ii) a Security Agreement, by and between the Company and Zions (collectively, the "Pledge Agreements"), p

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GRAND CANYON EDUCATION, INC. Date: October 1, 2024 By: /s/ Daniel E. Bachus Daniel E. Bachus Chief Financial Officer (Principal Financial Officer)