Caveat emptor.
https://finance.yahoo.com/news/u-purchase-university-phoenix-fraught-100000342.html
Caveat emptor.
https://finance.yahoo.com/news/u-purchase-university-phoenix-fraught-100000342.html
There are major risks associated with this deal that the public had no time to consider.
The University of Idaho will provide an annual guarantee of $10 million, should the entity set up to run the University of Phoenix be unable to service the $685 million in sub-investment-grade bonds that will be issued to finance the purchase for $550 million.
U of I will extend a $25 million line of credit to ensure the University of Phoenix remains liquid.
U of I will carry insurance with a $40 million deductible in case the University of Phoenix tanks.
U of I expects its credit rating to be downgraded, likely increasing its future borrowing costs.
These are the known risks, which are significant, and which the public should have had time to weigh. There are also many questions that remain unanswered.