Higher One lowers five-year revolver by $60 million to $140 million

By Toni Weeks

San Luis Obispo, Calif., Feb. 19 – Higher One Holdings, Inc. subsidiary Higher One, Inc. entered into a master reaffirmation and amendment to the loan documents for its five-year $200 million senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, which was completed on Feb. 12, reduces the revolving credit facility to $140 million, with $35 million reserved solely for the resolution of certain regulatory matters. The facility will again be reduced to $130 million on Dec. 31, 2015 and to $120 million on Dec. 30, 2016.

The amendment also changes the credit facility to, among other things,

• Maintain a debt to consolidated EBITDA ratio of 2.75 to 1.00 or less for the evaluation periods from March 31 through Sept. 30, 2016 and of 2.50 to 1.00 or less thereafter;

• Maintain consolidated EBITDA for the prior four fiscal quarters of at least $45 million as of March 31 and June 30, $40 million as of Sept. 30, 2015 and Dec. 31, 2015 and $35 million as of March 31, 2016 and thereafter;

• Set an interest rate of Libor plus 400 basis points for amounts outstanding under the October 2012 facility;

• Allow for settlement of up to $75 million related to certain regulatory matters;

• Allow for the exclusion from the computation of consolidated EBITDA of up to $75 million of income statement charges related to certain regulatory matters; and

• Automatically and permanently reduce the revolver, dollar for dollar up to a maximum reduction of $20 million, to the extent that the loss related to the regulatory matters mentioned above is less than $70 million.

Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer.

Higher One is a New Haven, Conn.-based company that creates cost-saving efficiencies for higher-education institutions and provides high-value services to students.

© 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.