DeVry Education Group Announces New Credit Agreement

DeVry Education Group (NYSE: DV), a global provider of educational services, today announced that it had entered into a new, secured revolving credit agreement. The amount of borrowing capacity available under the credit agreement is $400 million. Subject to certain conditions set forth in the credit agreement, the aggregate commitment may be increased up to $550 million. The credit agreement has a five-year term ending May 2020 and replaces DeVry Group's prior $400 million agreement that was set to expire in May 2016. "We view our credit facility as a key element of our capital structure as we pursue our strategic growth initiatives," said Daniel Hamburger, president and chief executive officer of DeVry Education Group. Borrowings under the credit agreement bear interest at LIBOR plus 200 basis points, although higher margins up to 300 basis points may apply based on the ratio of consolidated total debt to EBITDA (earnings before interest, taxes, depreciation and amortization). The credit agreement contains customary affirmative, negative and financial maintenance covenants, representations, warranties, events of default and remedies upon default including acceleration, and borrowing conditions. Currently, there are no outstanding borrowings under either the expiring or new credit facilities. Additional information is available in DeVry Group's current report on Form 8-K filed with the SEC today.