Educate to repay some term debt with IPO proceeds

By Sara Rosenberg

New York, May 14 - Educate Inc. plans to repay some of its term loan debt with a portion of the proceeds from its proposed initial public offering of its common stock, according to an S-1 filed with the Securities and Exchange Commission on Friday.

In April, the company closed on a new $200 million credit facility via JPMorgan that consists of a $170 million term loan and a $30 million undrawn revolver.

As of April 30, the term loan was bearing interest at 4.13%.

Remaining proceeds from the IPO will be used for capital expenditures, new program development, working capital and other general corporate purposes, which may include strategic acquisitions of businesses or of franchised centers, the filing added.

Educate is a Baltimore supplemental education services provider for K-12.

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