Case Studies

HBCU Capital Financing Program

Capital Financing Program Case Studies

The following case studies describe HBCU Capital Financing Program loans that involved the Rice Capital Access Program (RCAP) or key personnel at RCAP.

See a complete list of HBCU loan recipients.


Morgan State University
$25,000,000 New Money Loan
November 11, 2018



On November 11, 2018, Rice Capital Access Program completed a $25 million HBCU loan transaction for Morgan State University, a public HBCU in Baltimore, Maryland. Morgan State is Maryland’s designated public urban research university and the largest of Maryland’s historically black colleges and universities. The financing, which consisted of a 30-year loan with level debt service, represented a much needed solution to a long history of deferred maintenance at the University.  Rice Capital Access helped to address this concern by monetizing the value of on-campus assets, such as housing.   In addition to funding several projects around campus, the resulting revenue will help to address future maintenance needs on a more routine basis. The $25 million new money transaction generated $10 million for deferred maintenance improvements and $15 million for a variety of projects, including renovations to existing properties, roof replacements, electric improvements and HVAC upgrades.  Morgan State is rated “A1” by Moody’s Investors Service and “A+” by Standard & Poor’s.  Initial Draw Date:  11/15/2018, Initial Loan Rate: 3.361%


Alabama State University
$152,000,000 Refinancing
March 6, 2018



On March 6, 2018, Rice Capital Access Program completed a $152 million HBCU loan transaction that refinanced 6 series of bonds and terminated a LIBOR fixed rate payor swap for Alabama State University.  This current and advance refunding generated $17.55 million (13.39%) in net present value savings. In addition to the substantial savings, this refinancing eliminated an interest rate swap associated with the Series 2004 ARS.  The rating triggers governing the swap insurer, National Public Finance Insurance Corp., could be breached if there was any further diminution in the swap insurer’s rating.  Such an event, were it to occur, would trigger a swap termination payment for the account of the University, which was $2.249 million.  Elimination of the swap with this refinancing avoided the risk of such a termination payment, the headline issues caused by the termination, and their impact on the University and the cost of the University’s future access to the credit markets.  National Public Finance Insurance Corp. has a long-term insurer rating of “A3/A-/NR”.  Any decline below these rating levels by either rating agency, would trigger the demand for the swap termination payment by the University.  The University’s long term debt is rated “Ba1/B/NR.”  Initial Draw Date: 3/07/2018, Initial Loan Rate: 2018-1: 2.919% and 2018-2: 2.963%


South Carolina State University
$36,600,000 Refinancing and New Money Loan
September 27, 2016


As part of its ongoing efforts to rein in fixed debt costs, South Carolina State University turned to Rice Capital Access Program in 2016 to refinance $36.6 million in outstanding debt.  The transaction, which refinanced a 2005 student housing HBCU loan, was completed on September 27, 2016, to stabilize and maintain balanced operations as part of the University’s broader right‐sizing effort.

The transaction generated $9.1 million in net present value savings for the University, broken out as $1.1 million in savings in 2017 and $520,000 in savings each subsequent year until 2035. The University achieved an extremely competitive interest rate of 1.633% on the new 18-year loan versus the original loan’s rate of 5.83%, outperforming the 20-year Treasury rate which was approximately 2.0% at the time.


Jarvis Christian College
$25,000,000 Refinancing and New Money Loan
July 28, 2016


With an acute housing shortage prompting some second- and third-year students to consider transferring to other colleges, Jarvis Christian College (JCC) in Hawkins, Texas, worked Rice Capital Access to complete a $25 million financing through the HBCU Capital Financing Program. The new money component of the loan is being used to renovate a two-story, three-wing residential unit and the construction of a new on-campus residential. The refinancing part of the transaction freed up capacity to help the College meet other infrastructure needs. The transaction was structured with a 30-year term at a competitive interest rate.


University of the Virgin Islands
$19,000,000 New Money Loan
February 27, 2015



On February 27, 2015, Rice Capital Access Program facilitated a direct loan placement for the University of the Virgin Islands on behalf of the U.S. Department of Education’s Historically Black College and University Capital Financing Program.  The transaction totaled $19 million and will help finance a new medical school at the University.

The 28,000-square-foot medical school building is expected to cost $11 million and will be located on the St. Thomas campus.  It is designed as a multi-level facility with seminar rooms, laboratories, lecture halls and student lounges and will provide space for instructional activities, including small group rooms, intermediate size rooms for Just-in-Time and team-based learning, large lecture auditoria, and an anatomy and physiology simulation laboratory.  A clinical skills center will be constructed for simulated and standardized patient sessions and examinations, and the building will also have approximately 1,500 square feet of laboratory research space. It is slated to open to its first class in the fall of 2016.

In addition to the medical center, a 15,000-square-foot high fidelity simulation center, estimated to cost $4-7 million, will be constructed on the St. Croix campus.  The building will be equipped with sophisticated manikin-based simulation models and other interactive tools to enhance medical training for students, physicians and allied health professionals.