Advisory Board enters $150 million secured revolving credit facility

By Jennifer Chiou

New York, Aug. 3 - The Advisory Board Co. and one of its subsidiaries entered into on July 30 a $150 million five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA acted as administrative agent.

At the company's election, the amount may be increased by up to an additional $50 million in minimum increments of $10 million.

There is a sublimit for up to $5 million principal amount of swingline loans and $10 million of letters of credit, the filing stated.

Borrowings will bear interest at Libor plus 175 basis points to 250 bps based on the company's total leverage ratio. There is an unused fee of 25 bps to 40 bps, also based on leverage.

Under the agreement, the company must maintain a maximum total leverage ratio of no greater than 3.50 to 1.00; a maximum senior secured leverage ratio of no more than 2.50 to 1.00; and a minimum interest coverage ratio of no less than 3.00 to 1.00.

Proceeds will be used to finance working capital needs and for general corporate purposes, including permitted acquisitions.

The Washington, D.C.-based company provides research, technology and consulting for hospitals and universities.

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