Capella Education Company Enters into an Amended and Restated Revolving Credit Agreement
December 21 2015 - 5:00PM
Business Wire
Capella Education Company (NASDAQ:CPLA), a provider of
online post-secondary education, primarily through its wholly owned
subsidiary Capella University, today announced that it has entered
into an amended and restated revolving credit agreement. The
amended credit agreement continues to provide $100 million of
borrowing capacity, with a conditional increase option of an
additional $50 million. The agreement has a term of five years
ending Dec. 18, 2020 and replaces the previous five year agreement
scheduled to expire Sept. 30, 2016.
“This credit facility provides Capella with additional financial
flexibility to support long-term sustainable growth and flexibility
to consider future strategic growth initiatives," said Steve
Polacek, senior vice president and chief financial officer.
Capella Education Company is entering into this amended credit
agreement with Bank of America, N.A. as the administrative agent
and a lender, and with other lenders including PNC Bank National
Association, Associated Bank National Association, and Bank of the
West.
Additional information is available in Capella Education
Company's Form 8-K filed with the Securities and Exchange
Commission today.
Forward-Looking Statements
Certain information in this news release does not relate to
historical financial information, including statements relating to
future prospects and expectations regarding our growth, revenues,
enrollment, and operating performance, and should be considered
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The company cautions
investors not to place undue reliance on any such forward-looking
statements, which are based on information available at the time
those statements are made or management's good faith belief as of
that time with regard to future events, and should not be read as a
guarantee of future performance or results. Such statements are
subject to risks and uncertainties which could cause the company's
actual results to differ materially from historical results and
from results presently anticipated or projected. The company
undertakes no obligation to update its forward-looking
statements.
Among these risks and uncertainties are any failure to
materially comply with the extensive regulatory framework
applicable to us, including compliance with Title IV of the Higher
Education Act and the regulations thereunder; complying with U.S.
Department of Education rules, including those regarding incentive
compensation and gainful employment disclosures, certifications and
program requirements; maintaining our business in accordance with
regional and specialized accreditation standards and state
regulatory and program approval requirements; adapting to changes
in the administration, funding and availability for Title IV
programs; any governmental review of our business, marketing, or
financial aid practices, including by any state attorneys general,
the federal Consumer Financial Protection Bureau, the Minnesota
Office of Higher Education or other state regulatory bodies;
successfully growing our FlexPath programs; maintaining and
expanding existing commercial relationships with employers and
developing new employer and business partner relationships;
successfully managing our PhD completion efforts; improving our
conversion rate and effectively leveraging our brand-driven
marketing strategy; keeping up with advances in technology
important to the online learner experience; effectively managing
data security risks; improving our learner persistence and cohort
retention rate; and managing risks associated with the overall
competitive environment and general economic conditions.
Other factors that could cause the company’s results to differ
materially from those contained in its forward-looking statements
include those described in the “Risk Factors” section of our most
recent Annual Report on Form 10-K on file with the Securities and
Exchange Commission (SEC), and any updates or developments
described in our Quarterly Reports on Form 10-Q and other documents
the company files with the SEC.
About Capella Education Company
Founded in 1991, Capella Education Company
(http://www.capellaeducation.com) is a leader in online education,
primarily through our wholly owned subsidiary Capella University
(http://www.capella.edu), a regionally accredited* online
university with almost 37,000 learners as of Sept. 30, 2015. In
addition, Capella Education Company offers online education through
Arden University, formerly called Resource Development
International Ltd. (RDI) (http://www.rdi.co.uk), an independent
provider of United Kingdom (UK) university distance learning
qualifications. Capella Education Company also owns Sophia
(http://www.sophia.org), an innovative learning platform leveraging
technology to support self-paced learning.
*Capella University is accredited by The Higher Learning
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20151221006222/en/
Capella Education CompanyInvestor Contact:Heide
Erickson, 612-977-5172Heide.Erickson@capella.eduorMedia
Contact:Mike Buttry, 612-977-5499Mike.Buttry@capella.edu
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