Strayer ups revolver by $50 million, lowers pricing, extends maturity

By Wendy Van Sickle

Columbus, Ohio, July 8 – Strayer Education, Inc. increased availability under its credit agreement dated Nov. 8, 2012 by $50 million, lowered its pricing and extended its maturity, according to an 8-K filed with the Securities and Exchange Commission.

The July 2 amendment lifts Strayer’s revolving credit facility’s capacity to $150 million, up from $100 million, with an option to increase commitments by another $50 million.

Interest on the revolver was reduced to Libor plus 175 basis points to Libor plus 225 bps, down from Libor plus 200 bps to Libor plus 250 bps. The commitment fee dropped to 25 bps to 35 bps from 30 bps to 40 bps.

The maturity date of the credit agreement was extended to July 2, 2020 from Dec. 31, 2016.

Before the amendment the credit agreement also included a $125 million term loan. Strayer prepaid the outstanding balance of the term loan on July 2 to coincide with the amendment, and there were no borrowings outstanding under the revolver.

SunTrust Robinson Humphrey, Inc., BMO Capital Markets Corp., PNC Capital Markets LLC and Merrill Lynch, Pierce, Fenner & Smith, Inc. are the joint lead arrangers and joint book managers.

SunTrust Bank is the administrative agent. Co-syndication agents are Bank of Montreal and PNC Bank, NA, and Bank of America, NA is the documentation agent.

Based in Herndon, Va., Strayer, through subsidiary Strayer University, provides post-secondary education services for working adults.

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