Saint Augustine's University Receives Loan Commitment from Gothic Ventures
RALEIGH, NC / ACCESSWIRE / August 16, 2024 / Gothic Ventures is pleased to announce the closing of a credit agreement under which Saint Augustine's University (SAU) may receive up to $30 million. The initial credit allocation consists of a $7 million term loan funded at closing. Additional allocations may be provided in the future to support working capital requirements, operating expenses, capital expenditures, and real estate development. The credit agreement is secured by a deed of trust on the University's real estate holdings.
The University will use the proceeds of the initial $7 million term loan to address important short-term cash flow requirements that will permit the University to conduct classes for the 2024 fall academic semester. Among other things, these funds will be used to pay for work on the University's external audit, pay outstanding salaries due to the University employees, refund outstanding student credit balances, and fund certain operational expenses. The University's external payroll agent will process each outstanding payroll sequentially for logistical reasons.
Kip Johnson, founder and managing general partner of Gothic Ventures, stated, "We are excited to partner with Saint Augustine's University during this pivotal time. We are pleased to be able to provide funds to facilitate the continued operations and growth of Saint Augustine's University which has been an important part of North Carolina's higher education ecosystem for more than 150 years."
Marcus H. Burgess, president of Saint Augustine's, said, "This loan significantly affirms our commitment to our students and staff. We are grateful for the belief that Gothic Ventures has a place in our vision, allowing us to focus on enhancing the academic experience while showcasing our resilience in the face of adversity."
This loan is the first step in the University's multi-year plan to stabilize and grow the University. The University's board of trustees has been developing a strategy to streamline and focus the University's educational offerings while evaluating the most efficient use of its significant real estate portfolio to support the University's historic mission. The University expects to complete and begin implementing that strategy in the next 12 to 24 months.
About Gothic Ventures Gothic Ventures, based in Durham, NC, is a multi-class, multi-sector capital provider to small and middle market organizations. Gothic provides debt and equity capital to facilitate growth, construction, reorganizations, private equity, venture and other transactions. Gothic often creates novel investment structures using unique cash flow streams or specialized assets to help its partners achieve their objectives.
About Saint Augustine's University Founded in 1867 by the Episcopal Diocese of North Carolina, the mission of Saint Augustine's University is to sustain a learning community in which students can prepare academically, socially and spiritually for leadership in a complex, diverse and rapidly changing world.
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For more information on Saint Augustine's University, contact:
Demarcus Williams, 919-516-4410 adwilliams@st-aug.edu
SOURCE: FitzComm
View the original press release on accesswire.com
