LAUREATE EDUCATION, INC.LAUR
LAUREATE EDUCATION, INC. Debt Disclosure
Debt
Outstanding long-term debt was as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Senior long-term debt: | |||||||||||
| Senior Secured Credit Facility | $ | — | $ | — | |||||||
| Other debt: | |||||||||||
| Lines of credit | 43,278 | 29,989 | |||||||||
| Notes payable and other debt | 22,313 | 23,761 | |||||||||
| Total senior and other debt | 65,591 | 53,750 | |||||||||
Finance lease obligations | 63,463 | 48,395 | |||||||||
| Total long-term debt and finance leases | 129,054 | 102,145 | |||||||||
| Less: total unamortized deferred financing costs | 1,346 | 1,858 | |||||||||
| Less: current portion of long-term debt and finance leases | 54,585 | 41,260 | |||||||||
| Long-term debt and finance leases, less current portion | $ | 73,123 | $ | 59,027 | |||||||
As of December 31, 2025, aggregate annual maturities of the senior and other debt, excluding finance lease obligations, were as follows:
| Years Ended December 31, | Senior and Other Debt | ||||
| 2026 | $ | 45,177 | |||
| 2027 | 4,391 | ||||
| 2028 | 5,222 | ||||
| 2029 | 10,801 | ||||
| 2030 | — | ||||
| Thereafter | — | ||||
| Total senior and other debt | $ | 65,591 | |||
Senior Secured Credit Facility
Revolving Credit Facility
On September 18, 2023, the Company entered into a third amendment of its Senior Secured Credit Facility (as defined below) (the “Third Amendment”) to the Third Amended and Restated Credit Agreement, dated as of October 7, 2019 (the “Credit Agreement”; as amended by the First Amendment, dated as of July 20, 2020, the Second Amendment, dated as of December 23, 2022 and, as further amended by the Third Amendment, the “Amended Credit Agreement”). The credit available to be borrowed under the Amended Credit Agreement, whether as revolving loans or term loans, if any, are referred to herein collectively as the “Senior Secured Credit Facility.”
The Amended Credit Agreement, among other things, provides for $155,000 of revolving credit loans (the “Revolving Credit Facility”). As a subfacility under the Revolving Credit Facility, the Amended Credit Agreement provides for letter of credit commitments in the aggregate amount of $10,000. The Amended Credit Agreement also provides, subject to the satisfaction of certain conditions, for incremental revolving and term loan facilities, at the request of the Company and subject to lender approval, not to exceed (i) the greater of (a) $172,500 and (b) 50% of the Company’s Consolidated EBITDA, plus (ii) additional amounts so long as both immediately before and after giving effect to such incremental facilities the Company’s Consolidated Senior Secured Debt to Consolidated EBITDA Ratio, as defined in the Amended Credit Agreement, on a pro forma basis, does not exceed 2.25 to 1.00, plus (iii) the aggregate amounts of any voluntary repayments of term loans, if any, and aggregate amount of voluntary repayments of revolving credit facilities that are accompanied by a corresponding termination or reduction of revolving credit commitments.
The maturity date for the Amended Credit Agreement is September 18, 2028. The Revolving Credit Facility bears interest at a per annum interest rate, at the option of the Company, at either the EURIBOR rate, the Term SOFR rate or the ABR rate plus an applicable margin of 2.50% per annum, 2.25% per annum, 2.00% per annum or 1.75% per annum for EURIBOR loans or Term SOFR loans, and 1.50% per annum, 1.25% per annum, 1.00% per annum or 0.75% per annum for ABR loans, in each case, based on the Company’s Consolidated Total Debt to Consolidated EBITDA ratio as defined in the Amended Credit Agreement.
As of December 31, 2025 and 2024, there was no outstanding balance under our Senior Secured Credit Facility.
Guarantors of the Senior Secured Credit Facility
Laureate Education, Inc. is the borrower under our Senior Secured Credit Facility. All of Laureate’s required United States legal entities, excluding certain subsidiaries that the Company considers dormant based on the lack of activity, are guarantors of the Senior Secured Credit Facility, and all of the guarantors’ assets, both real and intangible, are pledged as collateral. Additionally, not more than 65% of the shares held directly by Laureate Education, Inc. or any guarantors in non-domestic subsidiaries are pledged as collateral.
Estimated Fair Value of Debt
As of December 31, 2025 and 2024, the estimated fair value of our debt approximated its carrying value.
Certain Covenants
As of December 31, 2025, our Amended Credit Agreement contained certain negative covenants including, among others: (1) limitations on additional indebtedness; (2) limitations on dividends; (3) limitations on asset sales, including the sale of ownership interests in subsidiaries and sale-leaseback transactions; and (4) limitations on liens, guarantees, loans or investments. The Amended Credit Agreement also provides, solely with respect to the Revolving Credit Facility, that the Company shall not permit its Consolidated Senior Secured Debt to Consolidated EBITDA ratio, as defined in the Amended Credit Agreement, to exceed 3 as of the last day of each quarter commencing with the quarter ending December 31, 2019 and thereafter. The Amended Credit Agreement also provides that if less than 25% of the Revolving Credit Facility is utilized as of that date, then such financial covenant shall not apply. As of December 31, 2025, this condition was satisfied and, therefore, we were not subject to the leverage ratio. In addition, indebtedness at some of our locations contain financial maintenance covenants. We were in compliance with these covenants as of December 31, 2025.
Debt Issuance Costs
Amortization of debt issuance costs and accretion of debt discounts that are recorded in Interest expense in the Consolidated Statements of Operations totaled approximately $519, $584 and $1,241 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, our unamortized debt issuance costs were $1,346 and $1,858, respectively.
Other Debt
Lines of Credit
Individual Laureate subsidiaries have the ability to borrow pursuant to unsecured lines of credit and similar short-term borrowing arrangements (collectively, lines of credit). The lines of credit are available for working capital purposes and enable us to borrow and repay until those lines mature. At December 31, 2025 and 2024, the aggregate outstanding balances on our lines of credit were $43,278 and $29,989, respectively. At December 31, 2025, we had approximately $64,700 additional available borrowing capacity under our outstanding lines of credit. Interest rates on our lines of credit ranged from 4.65% to 5.00% and 5.10% to 5.65% at December 31, 2025 and 2024, respectively. Our weighted-average short-term borrowing rate was 4.70% and 5.46% at December 31, 2025 and 2024, respectively.
Notes Payable
As of December 31, 2025, notes payable included an unsecured term loan maturing in 2029, as discussed below. As of December 31, 2024, notes payable included the unsecured term loan as well as a loan in Peru, as discussed below.
An unsecured term loan is held by one of our Mexican subsidiaries and was scheduled to mature in June 2024. During the second quarter of 2024, we entered into a loan modification, which extended the maturity of the loan to June 2029. The loan carries a variable interest rate based on the 28-day Mexican Interbanking Offer Rate (TIIE), plus an applicable margin, which is established based on the ratio of debt to EBITDA, as defined in the agreement (8.85% and 11.74% as of December 31, 2025 and 2024, respectively). Under the loan modification agreement, quarterly principal repayments resumed in December 2024, beginning at MXN 4,250 ($237 at December 31, 2025) and increasing to MXN 23,375 ($1,306 at December 31, 2025), with a balloon payment of MXN 170,000 ($9,495 at December 31, 2025) due at maturity. As of December 31, 2025 and 2024, the outstanding balance of this loan was $22,313 and $20,799, respectively.
In prior years, the Company obtained financing to fund the construction of two campuses at one of our institutions in Peru. As of December 31, 2024, one loan remained outstanding that had an interest rate of 5.09%, and this loan was fully paid off in the second quarter of 2025. As of December 31, 2025 and 2024, the outstanding balance of this loan was $0 and $2,962, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.