Bright Horizons Family Solutions Inc. Secures $450M Loan Facility

By Hao Liu • Friday, August 22 13:17 • Permanent Link

Bright Horizons Family Solutions LLC has recently entered into a Fourth Amendment to Second Amended and Restated Credit Agreement, which includes the establishment of a new term "B" loan facility in an aggregate principal amount of $450,000,000, maturing on the date that is seven years after the Effective Date. This amendment replaces the Existing Term B Loans, with 2025 Term B Lenders committing to provide 2025 Term B Loans in the same amounts as the Existing Term B Loans. The proceeds of the 2025 Term B Loans, along with cash on hand of the Borrower and the proceeds of Revolving Credit Loans, will be used to prepay in full the Existing Term B Loans and all related fees and expenses.

As part of the amendment, each Existing Term B Lender holding Existing Term B Loans has elected for a "cashless conversion" of 100% of its Existing Term B Loans into 2025 Term B Loans in the same principal amount. Simultaneously with the making of 2025 Term B Loans, the Borrower will pay all accrued and unpaid fees and other amounts in respect of the Existing Term B Loans.

The amendment also includes conditions precedent to the effectiveness of the Amendment, such as the Borrower providing a prepayment notice with respect to the prepayment of the Existing Term B Loans, certificates of good standing, resolutions, and other certificates of Responsible Officers of each Loan Party, and a certificate attesting to the Solvency of the Borrower and its Restricted Subsidiaries.

Additionally, the Borrower will pay all costs and expenses of the Administrative Agent in connection with the preparation, negotiation, syndication, execution, and delivery of this Amendment. The amendment is considered a Loan Document, and all the terms and provisions of the Loan Documents are to remain in full force and effect, unless expressly amended or waived.

The Amendment may be executed in any number of counterparts, and delivery of an executed counterpart by telecopy, .pdf, or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment. As a result of these announcements, the company's shares have moved -0.48% on the market, and are now trading at a price of $121.88. For the full picture, make sure to review BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s 8-K report.

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