Education Management gets $50 million letter-of-credit facility

By Sara Rosenberg

New York, March 12 - Education Management LLC entered into a $50 million two-year letter-of-credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

BNP Paribas acted as the lead arranger and bookrunner on the deal that was completed on March 9.

Security is a lien on cash deposited in certain cash collateral accounts in an amount equal to 105% of the total amount of all letters-of-credit outstanding.

There is 15 basis point commitment fee times the average of the daily difference between the commitments and the total amount of all letters of credit outstanding.

Also, letter-of-credit fees equal 65 bps times the average aggregate daily maximum amount available to be drawn under the facility.

Education Management is a Pittsburgh-based provider of private post-secondary education.

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