Apollo enters into five-year $625 million multicurrency revolver

By Marisa Wong

Madison, Wis., April 19 - Apollo Group, Inc. entered into a five-year $625 million multicurrency revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on April 18, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement replaces Apollo's existing $500 million senior revolving credit facility.

The new facility may be increased by up to an additional $375 million.

The facility may be used for dollar-denominated revolving loans and for revolving loans denominated in certain foreign currencies, swingline loans and letters of credit.

Interest is equal to Libor plus a margin of 125 basis points to185 bps, depending on leverage.

There is also a facility fee of 0.25% to 0.40% based on the company's leverage ratio.

Under the facility, Apollo is required to maintain a leverage ratio of consolidated total indebtedness to consolidated EBITDA of no more than 2.50 to 1.00 and a minimum coverage ratio of consolidated EBITDAR to consolidated interest expense plus rent expense of no less than 1.75 to 1.00.

In addition, the company is required to maintain a minimum DOE score of 1.5. The DOE ratio is a consolidated composite score determined by the Secretary of the U.S. Department of Education.

Apollo is a Phoenix, Ariz.-based higher education program provider.

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