Educational Development Corporation Announces Extension of Credit Agreement with BOKF
Educational Development (NASDAQ: EDUC) has announced the execution of the Sixth Amendment to its Existing Credit Agreement with BOKF, NA. The amendment, effective October 3, 2024, extends the maturity date to January 4, 2025 and includes required step-downs on the Revolving Loan to $5.5 million by November 30, 2024.
The company also mentioned a previously announced Commercial Real Estate Contract with Partner Holdings for the sale of its Hilti Complex in Tulsa, Oklahoma, expected to be completed by January 4, 2025. CEO Craig White stated that the amendment provides continued borrowing capacity and aligns with the expected timeframe for closing the Hilti Complex sale.
The funds from the sale are anticipated to fully repay the borrowings under the Revolver and Term Loans. The company expects to operate with borrowings post-sale, potentially improving profitability and cashflow by eliminating debt and interest payments.
Educational Development (NASDAQ: EDUC) ha annunciato l'esecuzione del Sesto Emendamento al proprio Accordo di Credito Esistente con BOKF, NA. L'emendamento, che entra in vigore il 3 ottobre 2024, estende la data di scadenza al 4 gennaio 2025 e prevede riduzioni progressivi del Prestito Rotativo a 5,5 milioni di dollari entro il 30 novembre 2024.
L'azienda ha anche menzionato un contratto di vendita di beni immobili commerciali già annunciato con Partner Holdings per la vendita del suo Complesso Hilti a Tulsa, Oklahoma, previsto per essere completato entro il 4 gennaio 2025. L'amministratore delegato Craig White ha dichiarato che l'emendamento offre una continua capacità di prestito e si allinea con il periodo previsto per la chiusura della vendita del Complesso Hilti.
Si prevede che i fondi dalla vendita restituiranno completamente i prestiti sotto il Prestito Rotativo e i Prestiti a Breve Termine. L'azienda prevede di operare con prestiti post-vendita, potenzialmente migliorando la redditività e il flusso di cassa eliminando debiti e pagamenti di interessi.
Educational Development (NASDAQ: EDUC) ha anunciado la ejecución de la Sexta Enmienda a su Acuerdo de Crédito Existente con BOKF, NA. La enmienda, que entra en vigencia el 3 de octubre de 2024, extiende la fecha de vencimiento al 4 de enero de 2025 e incluye reducciones necesarias en el Préstamo Revolvente a 5,5 millones de dólares para el 30 de noviembre de 2024.
La compañía también mencionó un contrato de bienes raíces comerciales previamente anunciado con Partner Holdings para la venta de su Complejo Hilti en Tulsa, Oklahoma, que se espera se complete para el 4 de enero de 2025. El CEO Craig White declaró que la enmienda proporciona capacidad continua de endeudamiento y se alinea con el marco temporal esperado para cerrar la venta del Complejo Hilti.
Se anticipa que los fondos de la venta pagarán completamente los préstamos bajo el Préstamo Revolvente y los Préstamos a Plazo. La empresa espera operar con deudas después de la venta, lo que potencialmente mejorará la rentabilidad y el flujo de caja eliminando deudas y pagos de intereses.
교육 개발 (NASDAQ: EDUC)이 BOKF, NA와의 기존 신용 계약에 대한 제6차 수정안을 실행했다고 발표했습니다. 이 수정안은 2024년 10월 3일부터 유효하며 만기일을 2025년 1월 4일로 연장합니다 그리고 2024년 11월 30일까지 회전 대출을 550만 달러로 단계적으로 감소하는 내용을 포함하고 있습니다.
회사는 또한 2025년 1월 4일까지 완료될 것으로 예상되는 오클라호마주 털사에 있는 힐티 콤플렉스를 Partner Holdings에 판매하는 상업용 부동산 계약을 미리 발표했습니다. CEO인 크레이그 화이트는 수정안이 계속되는 대출 용량을 제공하며 힐티 콤플렉스 판매 완료 예상 일정과 일치한다고 언급했습니다.
판매로부터의 자금은 회전 대출 및 기간 대출을 완전히 상환할 것으로 예상됩니다. 회사는 판매 후 차입금으로 운영할 것으로 예상하며, 이는 부채와 이자 지급을 제거하여 수익성 및 현금 흐름을 개선할 수 있습니다.
Educational Development (NASDAQ: EDUC) a annoncé l'exécution de la sixième modification de son accord de crédit existant avec BOKF, NA. La modification, qui prend effet le 3 octobre 2024, prolonge la date d'échéance au 4 janvier 2025 et inclut des réductions progressives du prêt revolving à 5,5 millions de dollars d'ici le 30 novembre 2024.
La société a également mentionné un contrat immobilier commercial précédemment annoncé avec Partner Holdings pour la vente de son complexe Hilti à Tulsa, Oklahoma, qui devrait être finalisée d'ici le 4 janvier 2025. Le PDG Craig White a déclaré que la modification permet une capacité d'emprunt continue et s'aligne sur le calendrier attendu pour la finalisation de la vente du complexe Hilti.
Les fonds provenant de la vente devraient rembourser complètement les emprunts sous le prêt revolving et les prêts à terme. L'entreprise s'attend à fonctionner avec des emprunts après la vente, ce qui pourrait potentiellement améliorer la rentabilité et le flux de trésorerie en éliminant les dettes et les paiements d'intérêts.
Educational Development (NASDAQ: EDUC) hat die Durchführung der sechsten Änderung zu seinem bestehenden Kreditvertrag mit BOKF, NA bekannt gegeben. Die Änderung, die am 3. Oktober 2024 in Kraft tritt, verlängert das Fälligkeitsdatum auf den 4. Januar 2025 und beinhaltet erforderliche schrittweise Reduzierungen bei dem revolvierenden Darlehen auf 5,5 Millionen Dollar bis zum 30. November 2024.
Das Unternehmen erwähnte auch einen zuvor angekündigten gewerblichen Immobilienvertrag mit Partner Holdings für den Verkauf seines Hilti-Komplexes in Tulsa, Oklahoma, der voraussichtlich bis zum 4. Januar 2025 abgeschlossen sein wird. CEO Craig White erklärte, dass die Änderung eine fortlaufende Kreditaufnahme ermöglicht und mit dem erwarteten Zeitrahmen für den Abschluss des Verkaufs des Hilti-Komplexes übereinstimmt.
Die Mittel aus dem Verkauf sollen die Darlehen unter dem Revolver- und Term-Darlehen vollständig zurückzahlen. Das Unternehmen plant, nach dem Verkauf mit Darlehen zu arbeiten, was potenziell die Rentabilität und den Cashflow durch die Eliminierung von Schulden und Zinszahlungen verbessern könnte.
- Extension of credit agreement maturity date to January 4, 2025
- Expected sale of Hilti Complex to pay off all outstanding loans
- Anticipated improvement in profitability and cashflow after debt elimination
- Required step-downs on Revolving Loan to $5.5 million by November 30, 2024
Insights
The extension of EDUC's credit agreement with BOKF is a critical financial maneuver that provides the company with essential liquidity during a transitional period. The alignment of the January 4, 2025 extension with the expected closing of the Hilti Complex sale demonstrates strategic financial planning. This move buys time for EDUC to complete the property sale, which is pivotal for debt reduction.
The planned reduction of the Revolving Loan to
However, investors should note that this strategy hinges on the successful and timely completion of the Hilti Complex sale. Any delays or complications in this transaction could pose risks to the company's debt reduction plan and overall financial stability.
The sale of EDUC's headquarters and distribution warehouse, the Hilti Complex, is a strategic move that could significantly impact the company's operations and financial position. This sale-leaseback type transaction is often used by companies to unlock capital tied up in real estate assets. The decision to sell suggests that EDUC values debt reduction and financial flexibility over property ownership.
The alignment of the credit agreement extension with the expected property sale closing date indicates careful planning. However, real estate transactions of this scale can be complex and subject to various contingencies. Investors should be aware that there's always a risk of delays or changes in terms, which could affect the company's debt repayment timeline.
Post-sale, EDUC will likely need to secure new facilities for its operations, which could impact future expenses. The transition to a leased property model may provide more operational flexibility but could also introduce new ongoing costs. The overall impact on long-term profitability will depend on the terms of any new lease agreements compared to the current ownership costs.
Tulsa, Oklahoma--(Newsfile Corp. - October 7, 2024) - Educational Development Corporation (NASDAQ: EDUC) (the "Company") announced it has executed the Sixth Amendment ("Amendment") to the Existing Credit Agreement ("Amendment") with BOKF, NA (the "Lender"). The Amendment, effective October 3, 2024, extends the maturity date to January 4, 2025 and includes required step downs on the Revolving Loan to
On September 19, 2024 the Company announced the executed Commercial Real Estate Contract ("Contract") with Partner Holdings ("Buyer") for the sale of the Company's headquarters and distribution warehouse located at 5400-5402 South 122nd East Avenue, Tulsa, Oklahoma 74146 (the "Hilti Complex"). The Contract is expected to be completed by January 4, 2025.
"We are pleased with the execution of this amendment as it provides continued borrowing capacity on our line of credit," said Craig White, President and Chief Executive Officer. "The period of the extension of the Revolving Loan through January 4, 2025 is aligned with the expected timeframe for closing on the sale of the Hilti Complex."
Mr. White continued, "The funds received from the sale of the Hilti Complex are expected to completely pay off the borrowings under the Revolver and Term Loans outstanding with our Lender and we expect to operate with limited borrowings following the sale of the complex. Selling the Hilti Complex and eliminating our debt and interest payments are expected to have a favorable impact on our profitability and cashflow."
About Educational Development Corporation (EDC)
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
Investor Relations:
Three Part Advisors, LLC
Steven Hooser, (214) 872-2710
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225867
FAQ
What is the new maturity date for Educational Development 's credit agreement with BOKF?
How much does Educational Development (EDUC) need to reduce its Revolving Loan by November 30, 2024?
What is Educational Development (EDUC) planning to sell, and by when?
How does Educational Development (EDUC) plan to use the funds from the sale of the Hilti Complex?
