Franklin Covey extends maturity of secured credit agreement to 2021

By Sarah Lizee

Olympia, Wash., Aug. 20 – Franklin Covey Co. entered into a ninth modification agreement to its existing amended and restated secured credit agreement on Friday to extend the maturity date to March 31, 2021 from March 31, 2020, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the lender.

Debt covenants continue to include a funded debt to EBITDAR ratio of less than 3 to 1, a fixed-charge coverage ratio greater than 1.15 to 1, and an annual limit on capital expenditures, excluding capitalized curriculum development, of $8 million.

Additionally, consolidated accounts receivable must exceed 150% of the outstanding borrowings on the revolving line of credit.

Other key terms and conditions of the credit agreement are substantially the same, the filing noted.

Franklin Covey is a Salt Lake City consulting and training company.

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