Educational Development Corporation Announces Extension of Credit Agreement With BOKF
Rhea-AI Summary
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.
Positive
- 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
Negative
- Required step-down of Revolving Loan to $4.5 million by May 31, 2025
- Continuing debt obligations requiring property sale for resolution
News Market Reaction
On the day this news was published, EDUC declined 9.97%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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?
