Education Holdings receives final approval of $7 million DIP facility

By Jim Witters

Wilmington, Del., Feb. 7 - Education Holdings 1, Inc. received final approval for access to its $7 million debtor-in-possession financing facility, according to documents filed Feb. 7 with the U.S. Bankruptcy Court for the District of Delaware.

The DIP agent is GE Capital.

The financing is through GE and other participating senior secured lenders.

The facility will mature on the earliest of 90 days from the bankruptcy filing date, the closing of any sale of substantially all of Education Holdings' assets and 30 days after the filing date if a final order has not been entered.

Interest will be either Base rate plus 450 basis points or Libor plus 550 bps.

Education Holdings 1, a Framingham, Mass.-based distance career school operator formerly known as the Princeton Review, Inc., filed for bankruptcy on Jan. 22. The Chapter 11 case number is 13-10101.

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