Corinthian Colleges, subsidiary boost credit facility to $315 million

By Angela McDaniels

Tacoma, Wash., Feb. 26 - Corinthian Colleges, Inc. and subsidiary Everest Colleges Canada, Inc. increased their credit facility to $315 million from $280 million on Feb. 22, according to an 8-K filing with the Securities and Exchange Commission.

The increase was achieved through the additional commitments of $5 million each by Union Bank, NA and Northern Trust Co. as well as a $25 million commitment from new lender SunTrust Bank.

The facility now includes a $295 million U.S. facility and a $20 million Canadian facility.

Bank of America, NA is the administrative agent, and U.S. Bank NA is the syndication agent.

In addition, subsidiary Heald Real Estate, LLC amended its term loan credit facility with Bank of America, NA that is secured by real estate of Heald Real Estate and guaranteed by Corinthian Colleges, Heald Capital, LLC and Heald Education, LLC.

The amendment waives compliance with all covenants and defaults under the mortgage facility except for the requirement that Heald Real Estate continue making regularly scheduled payments.

If at least one additional lender agrees to assume at least $8 million of the loans outstanding under the mortgage facility and either Heald Real Estate prepays or an additional lender agrees to assume approximately $7.1 million of the loans outstanding by no later than March 31, the facility will be amended and restated to align the covenants and defaults with those in Corinthian Colleges' credit facility.

If the amendment and restatement of the mortgage facility does not occur by March 31, Heald Real Estate will be required to pay off and terminate the facility.

Corinthian Colleges is a Santa Ana, Calif.-based post-secondary education company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.