American Public eyes $195 million credit facilities for Rasmussen buy

By Sara Rosenberg

New York, Oct. 29 – American Public Education Inc. has received a commitment for $195 million of senior secured credit facilities to help fund its acquisition of Rasmussen University, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Macquarie Capital (USA) Inc. is the lead arranger and bookrunner on the deal.

The facilities consist of a $20 million five-year revolver and a $175 million six-year term loan B.

Based on the commitment letter, the term loan B is expected to have 101 soft call protection for one year and amortization of 5% per annum.

Included in the credit facilities is a maximum total net leverage covenant.

Under the agreement, Rasmussen is being acquired for $329 million, split between $300 million in cash and $29 million of non-voting preferred stock.

Closing is expected by the middle of the third quarter of 2021, subject to review by the Department of Education, approval by the Higher Learning Commission and approval of or notices to other regulatory and accrediting bodies.

American Public is a Charles Town, W.V.-based provider of higher learning. Rasmussen is a nursing- and health sciences-focused institution.

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