K12 enters into $100 million five-year revolving credit facility

By Sarah Lizee

Olympia, Wash., Jan. 27 – K12 Inc. entered into a credit agreement on Monday providing for a $100 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $10 million swingline loan sublimit and a $10 million letter-of-credit sublimit.

The company has the ability to request increases to the borrowing commitments under either the revolver or one or more tranches of term loans of up to $200 million in total, subject to customary conditions.

The revolver matures in January 2025.

Interest is Libor plus 87.5 basis points to 150 bps.

Covenants include a leverage ratio of consolidated debt s to consolidated adjusted EBITDA of no more than 3.25x and an interest coverage ratio of consolidated EBIDTA to consolidated interest expense of at least 3x.

PNC Capital Markets LLC is the lead arranger, bookrunner and administrative agent.

K12 is a for-profit education company that sells online schooling and curricula. It is based in Herndon, Va.

© 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.