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Subsequent Event
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events

11.

Subsequent Event

 

On July 2, 2015, the Company entered into an amendment to the Existing Credit Facility with its subsidiary the University, and other lenders (the “Amended Credit Facility”). Concurrent with entering into the Amended Credit Facility, the Company prepaid the outstanding principal balance of the term loan and terminated the Swap.

 

The Amended Credit Facility, among other things (i) increases the total commitments under the revolving credit facility (the “Revolver”) from $100 million to $150 million, and (ii) provides the Company with an option, under certain conditions, to increase the commitments under the Revolver or establish one or more incremental term loans in an amount up to $50 million in the aggregate in the future. The maturity date of the Amended Credit Facility is July 2, 2020.

 

In addition, the Amended Credit Facility provides that (i) borrowings under the Revolver will bear interest at a per annum rate equal to, at the Company’s election, LIBOR or a base rate, plus a margin ranging from 1.75% to 2.25% (in lieu of the previous range from 2.00% to 2.50%), depending on the Company’s leverage ratio, and (ii) the quarterly unused commitment fee shall be equal to a percentage ranging from 0.25% to 0.35% per annum (in lieu of the previous range from 0.30% to 0.40% per annum) depending on the Company’s leverage ratio, times the daily unused amount under the Revolver.

 

Except for the changes implemented by the amendment, all other remaining terms of the Existing Credit Agreement, including the requirements that the Company satisfy certain financial maintenance covenants, remain in full force and effect.