York St John University secures funding for growth
YORK St John University has completed a £35m debt refinancing, including a new £22m facility from Barclays.
The ten-year deal will support York St John in its expansive and developmental strategy and has helped facilitate the acquisition of new purpose-built accommodation, for up to 258 students at St John Central in York city centre.
David Chesser, chief operating officer at York St John, said: “It’s exciting times for the University. Recognition of the quality of our teaching is delivering growth. This, in turn, positions us for investment so that other aspects of the student experience we offer are of an equally high standard.
“Taking ownership of the St John Central accommodation within the city walls not only means that students are able to benefit from brand new, high quality accommodation, but it also gives us greater control over this important element of our infrastructure.”
The University, founded in 1841, is delivering significant growth in student numbers in these turbulent times for UK Higher Education. Applications to the University have risen 67% over the last five years.
KPMG advised the University on the financing. Nick Dodd, of KPMG’s Northern debt advisory team, said: “This deal highlights the fact that long term liquidity in the banking market is available to universities with a strong reputation and growth ambitions.
“We are very pleased to have advised York St John on securing a funding package which has immediately translated into investment in their offering. It also provides for the funding of a number of additional capital projects identified for the medium term.”
Angela Potter, relationship director within Barclays education team, said: “York St John University provides valuable education to thousands of students and this funding reflects the quality of that teaching and the University’s commitment to the thousands of future students who will pass through its doors.
“Barclays has provided dedicated support to the education sector for more than 15 years and during this time we have become a trusted partner to organisations including York St John University with which we have a long-standing relationship. The longevity of this relationship enabled us to support its exciting new capital plans and structure suitable facilities to meet their business needs.”
Bond Dickinson provided legal advice to the University on the transaction and Eversheds advised Barclays.