11. CREDIT AGREEMENT

On October 31, 2014, the Company; its wholly-owned subsidiary, CEC Educational Services, LLC (“CEC-ES”); and the subsidiary guarantors thereunder entered into a First Amendment (the “First Amendment”) to its Amended and Restated Credit Agreement dated as of December 30, 2013 (as amended, the “Credit Agreement”) with BMO Harris Bank N.A. (“BMO Harris”), in its capacities as the initial lender and letter of credit issuer thereunder and the administrative agent for the lenders which from time to time may be parties to the Credit Agreement, to among other things, increase the revolving credit facility to $120.0 million. The revolving credit facility under the Credit Agreement is scheduled to mature on June 30, 2016. The Credit Agreement requires that fees and interest are payable monthly and quarterly in arrears, respectively, and principal is payable at maturity. Any borrowings bear interest at fluctuating interest rates based on either the base rate or the London Interbank Offered Rate (LIBOR), plus the applicable rate based on the type of loan.

We may prepay amounts outstanding, or terminate or reduce the commitments, under the Credit Agreement upon three or five business days’ prior notice, respectively, in each case without premium or penalty. The Credit Agreement contains customary affirmative, negative and financial maintenance covenants, including a requirement to maintain a three month average balance of cash, cash equivalents and permitted investments in our domestic accounts of at least $190.0 million at all times, subject to adjustment for certain cash payments made by the Company in connection with buyouts of leases for campus locations and other facilities. The loans and letter of credit obligations under the Credit Agreement are secured by 100% cash collateral. The agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default, including rights to accelerate the loans, terminate the commitments and rights to realize upon the collateral securing the obligations under the Credit Agreement.

We have $10.0 million outstanding as of December 31, 2014, pursuant to the revolving credit facility under the Credit Agreement. The full amount borrowed as of December 31, 2014 is classified as short-term borrowings on our consolidated balance sheet.

Selected details of our credit agreements as of and for the years ended December 31, 2014 and 2013 were as follows (dollars in thousands):


	As of December 31,
	2014			2013
Credit Agreement:
Credit facility remaining availability	$	98,437		$	70,000
Credit facility borrowings	$	10,000		$	—
Outstanding letters of credit ⁽¹⁾⁽²⁾	$	11,563		$	12,318
Availability of additional letters of credit ⁽³⁾	$	8,437		$	7,682
Weighted average daily revolving credit borrowings for the year ended	$	9		$	40
Weighted average annual interest rate		1.67	%		5.25	%
Commitment fee rate		0.25	%		0.25	%
Letter of credit fee rate		0.75	%		0.75	%

(1)	Represents letters of credit which are fully collateralized with $11.6 million and $12.6 million of restricted cash as of December 31, 2014 and 2013, respectively.

(2)	As of December 31, 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.3 million, which amount is fully collateralized with restricted cash, which is in addition to the $11.6 million reflected above.

(3)	The letters of credit sublimit of $20.0 million under the Credit Agreement is part of, not in addition to, the $120.0 million aggregate commitments.