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Alabama A&M University Secures Financing Package

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$96 Million Package Will Save $400,000 Per Year in Debt Service, Allow for Construction of New Residence Hall

 

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AAMU TEAM (l-r):  Clayton Gibson, vice president for business and finance; Atty. Angela Debro, general counsel; Dr. Andrew Hugine, Jr., president; Dr. Gary Crosby, interim vice president for student affairs.

FOR IMMEDIATE RELEASE                                   CONTACT: Jerome Saintjones

September 25, 2015                                                                         (256) 372-4863

 

HUNTSVILLE — Through a partnership with the U.S. Department of Education, Alabama A&M University has restructured a portion of its debt, while also acquiring the funds necessary for capital improvements on its campus, University officials announced Friday, Sept. 25.

 

The financial package includes refinancing of roughly $65 million of existing debt, which will result in a savings of about $400,000 per year. The package also provides roughly $30 million in a new loan, which will allow the University to construct a new 500-bed residence hall and to renovate several buildings on campus.

 

AAMU President Dr. Andrew Hugine, Jr., said the new and renovated facilities would enable the University to accommodate its recent increases in enrollment.

 

“Since 2012, we have experienced a remarkable 44% increase in freshman enrollment, and a 45% increase in graduate student enrollment. The financing we have secured today will give us the means to house and educate our ever-growing student body,” Dr. Hugine said.

 

The financing arrangements were secured under a Department of Education program designed to assist Historically Black Colleges and Universities in meeting their capital needs.

 

Dr. Hugine said the funds would help the University meet a range of student needs.

 

“The University is fortunate to have attracted and retained record numbers of students over the past several years. This financial package will enable us to meet the future needs of our growing student body, while also easing the burden of servicing existing debt,” Dr. Hugine said.

 

The AAMU loan is the largest in the HBCU Capital Financing Program’s history. Representing the University at the finance closing were President Andrew Hugine, vice president of business and finance Clayton Gibson, interim vice-president of student affairs Gary Crosby, and general counsel Angela Redmond Debro. 

 

Alabama Agricultural & Mechanical University, founded in 1875, is a land-grant institution. The AAMU campus is situated on more than 2,300 scenic acres, a five-minute commute from downtown Huntsville, Alabama. Its campus was laid out by Frederick Law Olmstead, Sr., designer of New York’s Central Park.

 

AAMU is the college home of students from 44 states and 11 foreign countries.

 

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Office of Marketing and Public Relations
Alabama A&M University
303 Patton Hall
Normal, AL 35762-1027
(256) 372-5654
(256) 372-5034 (Fax)
 
Jerome Saintjones, jerome.saintjones@aamu.edu, (256) 372-5607
Shirley Alexander, shirley.alexander@aamu.edu, (256) 372-5607
Interns/Bi-Weekly Students: (256) 372-5625