Morgan State University has received clearance to access a $70 million to be used in various construction projects as well as debt refinancing. Part of the finds will be used in the construction of student housing and as well as dining facilities. In addition, part of the funds will be used to refinance the university’s debt to avoid accumulating interest. The plan and request to seek the loan to Maryland Board of Public Works (BPW) which approved it.
In a statement, Morgan State vice president of finance and management Sidney Evans said around $32 million of the $70 million loan will be used to construct a new 670-bed student housing project plus a 30,000 sf dining facility at the campus. Dubbed the Thurgood Marshall Project, it will be the first student housing project to be undertaken on the campus in 20 years.
“When we were looking at financing options, we needed to find an option that met the needs of our board approved debt policy, would be affordable for the university and would take advantage of extremely low interest rates,” Evans said.
Morgan State University intends to borrow the money from Rice Capital Access Program LLC which is based in Georgia. The company has processed more than 50 loans for universities through the program.
In his explanation, Evans said Rice Capital was selected for the loan due to its low interest rates. The loan deal has since been closed. In addition, the university has entered into a public-private partnership with Maryland Economic Development Corp. (MEDCO) for the development of the Thurgood Marshall Project. Through the deal, MEDCO will help Morgan State University to access construction materials at subsidized costs.
According to Evans, the choice of Rice Capital for the loan also considered the replacement of other loan obligations. The university will use the remaining $38 million to refinance its debit.