PERDOCEO EDUCATION Corp Debt Disclosure
11. CREDIT AGREEMENT
On January 23, 2024, the Company and the subsidiary guarantors thereunder entered into a Second Amendment (the “Second Amendment”) to their credit agreement, dated as of September 8, 2021 and as amended on April 1, 2022 (the “Existing Credit Agreement”), with the lenders from time to time parties thereto and Wintrust Bank N.A. (“Wintrust”), in its capacities as the sole lead arranger, sole bookrunner, administrative agent and letter of credit issuer thereunder (the Existing Credit Agreement, as further amended by the Second Amendment, the “Credit Agreement”).
The Second Amendment, among other things: (i) extended the maturity date of the revolving credit facility to January 31, 2027; (ii) lowered the “Prime Rate” floor from 4% to 3%; (iii) replaced BMO Bank N.A. (formerly known as BMO Harris Bank N.A.) with Valley National Bancorp as one of the lenders that were party to the revolving credit facility; and (iv) modified the relative commitments of the lenders that were parties to the revolving credit facility.
Termination of credit agreement
On July 29, 2024, the Company gave notice of the termination of its credit agreement, dated as of September 8, 2021, as amended, by and among the Company, as borrower, certain of its subsidiary guarantors thereunder, the lenders from time-to-time parties thereto and Wintrust Bank N.A. (the “Termination”).
At the time of the Termination of the Credit Agreement, the Company was not in default under the Credit Agreement, nor did it have any amounts outstanding thereunder. The Credit Agreement was due to mature on January 31, 2027. The Company made the decision to terminate the Credit Agreement due to the Company’s strong cash position and to avoid uncertainty under the Credit Agreement associated with newly effective Title IV financial responsibility requirements.
The Termination was effective on July 30, 2024. Upon effectiveness of the Termination, all security interests and pledges granted to the secured parties under the Credit Agreement were terminated and released. The Company did not incur any material early termination penalties in connection with the Termination.
Selected details of our credit agreement as of and for the years ended December 31, 2024 and 2023 were as follows (dollars in thousands):
|
|
As of December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Credit Agreement: |
|
|
|
|
|
|
||
Credit facility remaining availability |
|
$ |
- |
|
|
$ |
124,133 |
|
Outstanding letters of credit |
|
$ |
- |
|
|
$ |
867 |
|
Availability of additional letters of credit (1) |
|
$ |
- |
|
|
$ |
124,133 |
|
Weighted average daily revolving credit borrowings |
|
$ |
- |
|
|
$ |
- |
|
Weighted average annual interest rate |
|
|
0.00 |
% |
|
|
0.00 |
% |
Commitment fee rate |
|
|
0.00 |
% |
|
|
0.30 |
% |
Letter of credit fee rate (2) |
|
|
0.00 |
% |
|
|
7.50 |
% |
________________
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 18, 2025 | Showing above |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
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.