Corinthian Colleges has completed an amended and increased $235 million credit facility, which includes a $50 million Canadian facility and a $185 million U.S. facility, both denominated in U.S. dollars, said Dennis Beal, executive v.p. and cfo. The credit was increased from $100 million and is in place to support the Santa Ana, Calif.-based company's growth plans, which include acquisitions and new branch campuses. The proceeds will also support capital expenditures to remodel, relocate and expand existing facilities, as well as fund other working capital needs. Corinthian is a for-profit post-secondary education company with colleges and training centers in the U.S. and Canada.
Beal said the three-year, revolving credits were increased after being oversubscribed by its lenders. "As a company, we are very pleased by the support we received," he said. Bank of America leads the bank lines, as it led the previous deal, Beal explained. He noted that when the facility was increased from $20 million to $100 million in June of 2002, the company decided to have B of A lead its credit in order to have broad access to other non-loan services such as mergers and acquisitions assistance. Beal said B of A has not yet provided Corinthian with other non-loan business, but the company looks forward to it in the future.
Union Bank of California led the credit before June 2002 and is currently a syndication agent on the new deal. Beal added that Northern Trust and Bank of Nova Scotia are new to the eight-lender syndicate. U.S. Bank National and J.P. Morgan are co-documentation agents on the deal. Comerica Bank elected not to rejoin the facility this time around, Beal said, without commenting further on the matter. Pricing on the credit is said to be in the LIBOR plus 7/8% range.