New College Seeks $47 Million for USF Campus Buyout
A finance committee approved a split loan structure involving a bank and an unnamed private investor.
By Victoria Hayes ·
The New College of Florida Finance and Administration committee voted unanimously on Friday to pursue a $47 million debt package. The funds are intended to cover the college’s acquisition of the University of South Florida Sarasota-Manatee campus.
Standard state university regulations restrict how institutions borrow money. Typically, colleges cannot hold subordinate liens, which are secondary loans paid after primary debt. These secondary loans usually carry higher interest rates due to increased risk. To meet its funding gap, New College secured a $40 million loan from BankUnited. An unnamed accredited investor will provide the remaining $7.5 million.
Financial documents state that the private investor was identified through a competitive selection process. No further details regarding the investor’s identity or background were released to the public.
Christie Fitz-Patrick, the college’s Vice President of Finance and Administration, clarified that Friday’s vote is a procedural step rather than the final authorization. She told committee members, “You guys are requesting for the Board of Governors to approve us to proceed with the borrowing of this, the financing, and working with BankUnited.” She added that final loan agreements must return to the board for approval before the deal closes.
The Board of Governors will vote on the measure on November 3. The acquisition remains subject to this final approval and the execution of loan agreements with BankUnited and the private creditor.
Source: WMNF
