Educate needs waiver/amendment to avoid non-compliance with financial covenants

By Sara Rosenberg

New York, May 10 - Educate Operating Co. LLC will need to obtain waivers or amend the terms of its credit facility to avoid non-compliance with financial covenants, according to a 10-Q filed with the Securities and Exchange Commission Thursday.

The company already had to obtain a waiver for the first quarter of the year, ended March 31, and now expects it will again need waivers for subsequent quarters in 2007.

Educate noted that it had decided not to seek an amendment to the facility because of the additional costs. A sale of the company is expected to close by June 30.

Educate is a Baltimore, based pre-K-12 education company.

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