Educational Development Corporation Announces Extension of Credit Agreement With BOKF
Educational Development (NASDAQ: EDUC) has secured an Eighth Amendment to its Credit Agreement with BOKF, NA. The amendment extends the Revolving Loan maturity to July 11, 2025, with required step-downs to $4.5 million by May 31, 2025. Additionally, the maturity dates for two term loans have been extended to September 19, 2025.
The company has demonstrated financial improvement by reducing bank debt by over $3.0 million and payables by $2.0 million. EDUC has engaged Keen-Summit as their new real estate broker to market the Hilti Complex, with the sale proceeds expected to fully repay outstanding Revolver and Term Loans. The company anticipates operating with borrowings post-sale, which should positively impact profitability and cashflow.
Educational Development (NASDAQ: EDUC) ha ottenuto un Ottavo Emendamento al suo Accordo di Credito con BOKF, NA. L'emendamento estende la scadenza del Prestito Rotativo al 11 luglio 2025, con riduzioni obbligatorie a 4,5 milioni di dollari entro il 31 maggio 2025. Inoltre, le scadenze di due prestiti a termine sono state prorogate al 19 settembre 2025.
L'azienda ha mostrato un miglioramento finanziario riducendo il debito bancario di oltre 3,0 milioni di dollari e i debiti verso fornitori di 2,0 milioni di dollari. EDUC ha incaricato Keen-Summit come nuovo agente immobiliare per la vendita del Complesso Hilti, i cui proventi dovrebbero estinguere completamente i prestiti rotativi e a termine in essere. L'azienda prevede di operare con finanziamenti dopo la vendita, il che dovrebbe avere un impatto positivo sulla redditività e sul flusso di cassa.
Educational Development (NASDAQ: EDUC) ha asegurado una Octava Enmienda a su Acuerdo de Crédito con BOKF, NA. La enmienda extiende la vencimiento del Préstamo Revolvente hasta el 11 de julio de 2025, con reducciones obligatorias a 4,5 millones de dólares para el 31 de mayo de 2025. Además, las fechas de vencimiento de dos préstamos a plazo se han extendido hasta el 19 de septiembre de 2025.
La compañía ha demostrado una mejora financiera al reducir la deuda bancaria en más de 3,0 millones de dólares y las cuentas por pagar en 2,0 millones de dólares. EDUC ha contratado a Keen-Summit como su nuevo agente inmobiliario para comercializar el Complejo Hilti, cuyos ingresos por venta se espera que paguen por completo los préstamos revolventes y a plazo pendientes. La empresa anticipa operar con financiamiento tras la venta, lo que debería impactar positivamente en la rentabilidad y el flujo de caja.
Educational Development (NASDAQ: EDUC)는 BOKF, NA와의 신용 계약에 대한 여덟 번째 수정안을 확보했습니다. 이 수정안은 회전 대출 만기일을 2025년 7월 11일로 연장하며, 2025년 5월 31일까지 450만 달러로 단계적 감축을 요구합니다. 또한 두 건의 기한부 대출 만기일도 2025년 9월 19일로 연장되었습니다.
회사는 은행 부채를 300만 달러 이상, 지급금도 200만 달러 줄이며 재정 상태가 개선되었음을 입증했습니다. EDUC는 Hilti 단지를 매각하기 위해 Keen-Summit을 새로운 부동산 중개인으로 선정했으며, 매각 수익금은 미지급 회전 및 기한부 대출을 전액 상환할 것으로 예상됩니다. 회사는 매각 후 차입금과 함께 운영할 계획이며, 이는 수익성과 현금 흐름에 긍정적인 영향을 미칠 것으로 기대됩니다.
Educational Development (NASDAQ : EDUC) a obtenu un huitième avenant à son accord de crédit avec BOKF, NA. Cet avenant prolonge la date d'échéance du prêt renouvelable au 11 juillet 2025, avec des réductions obligatoires à 4,5 millions de dollars d'ici le 31 mai 2025. De plus, les dates d'échéance de deux prêts à terme ont été prolongées jusqu'au 19 septembre 2025.
L'entreprise a démontré une amélioration financière en réduisant sa dette bancaire de plus de 3,0 millions de dollars et ses dettes fournisseurs de 2,0 millions de dollars. EDUC a engagé Keen-Summit comme nouveau courtier immobilier pour commercialiser le complexe Hilti, dont les produits de la vente devraient permettre de rembourser intégralement les prêts renouvelables et à terme en cours. La société prévoit d'opérer avec des emprunts après la vente, ce qui devrait avoir un impact positif sur la rentabilité et la trésorerie.
Educational Development (NASDAQ: EDUC) hat eine achte Änderung seines Kreditvertrags mit BOKF, NA, gesichert. Die Änderung verlängert die Fälligkeit des revolvierenden Darlehens bis zum 11. Juli 2025, mit erforderlichen Rückzahlungen auf 4,5 Millionen US-Dollar bis zum 31. Mai 2025. Zusätzlich wurden die Fälligkeitstermine für zwei Terminkredite bis zum 19. September 2025 verlängert.
Das Unternehmen hat eine finanzielle Verbesserung gezeigt, indem es die Bankschulden um über 3,0 Millionen US-Dollar und die Verbindlichkeiten um 2,0 Millionen US-Dollar reduziert hat. EDUC hat Keen-Summit als neuen Immobilienmakler beauftragt, den Hilti-Komplex zu vermarkten. Die Verkaufserlöse sollen die ausstehenden revolvierenden und Terminkredite vollständig tilgen. Das Unternehmen rechnet damit, nach dem Verkauf mit Kreditaufnahmen zu operieren, was sich positiv auf Rentabilität und Cashflow auswirken sollte.
- Secured credit agreement extension with BOKF
- Reduced bank debt by over $3.0 million
- Decreased payables by $2.0 million
- Expected debt elimination through Hilti Complex sale
- Anticipated improvement in profitability post-sale
- Required step-down of Revolving Loan to $4.5 million by May 31, 2025
- Continuing debt obligations requiring property sale for resolution
Insights
EDUC secures short-term credit extensions while attempting to sell major property asset to eliminate debt and improve financial health.
Educational Development has negotiated a critical short-term extension of its credit facilities with BOKF, pushing the maturity date of its revolving loan to July 11, 2025, and its term loans to September 19, 2025. The relatively brief extensions (only 3-5 months) coupled with required step-downs to
This amendment represents a temporary financial bridge while the company pursues the sale of its Hilti Complex - a strategy that appears central to EDUC's financial restructuring. Management reports having already reduced bank debt by
The engagement of Keen-Summit as a new broker after re-listing the property suggests previous marketing efforts were unsuccessful. This context makes the short extension timeline particularly notable - BOKF is providing runway, but with clear expectations for resolution within months, not years.
If successful, the Hilti Complex sale would transform EDUC's balance sheet by eliminating bank debt and related interest expenses, potentially improving profitability and cash flow. However, execution risks remain significant given the compressed timeline and dependency on finding a buyer at an adequate price in current market conditions.
Tulsa, Oklahoma--(Newsfile Corp. - April 17, 2025) - Educational Development Corporation (NASDAQ: EDUC) (the "Company") announced it has executed the Eighth Amendment ("Amendment") to the Existing Credit Agreement ("Amendment") with BOKF, NA (the "Lender"). The Amendment, effective April 4, 2025, extends the maturity date on the Revolving Loan to July 11, 2025 and includes required step downs on the Revolving Loan to
"We are grateful for our banks dedication to working with us, and the patience they have demonstrated, as our interests remain directly aligned. Throughout the process of marketing the Hilti Complex for sale we have continued to pay down our bank debt by over
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/248939
FAQ
What are the new maturity dates for EDUC's credit agreement with BOKF?
How much debt has Educational Development (EDUC) reduced recently?
What is EDUC's plan for the Hilti Complex sale proceeds?
How will the Hilti Complex sale impact EDUC's financial position?
