BFAM secures 2025 Term B facility to refinance prior Term B loans at SOFR+1.00% (1.50% floor)
Rhea-AI Filing Summary
Bright Horizons reported that its indirect subsidiary, Bright Horizons Family Solutions LLC, and related borrowers entered into a Fourth Amendment to their Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. as Administrative Agent and participating lenders. The amendment documents the issuance of a new 2025 Term B Loan Facility whose proceeds, together with revolving loans drawn on the closing date, were used to refinance in full the outstanding principal (and accrued interest) of the prior Term B loans and to pay related fees and expenses. The 2025 Term B Loans bear interest at one-month Term SOFR plus 1.00%, subject to an interest rate floor of 1.50%. The amendment attaches amended pages to the existing credit agreement.
Positive
- Existing Term B Loans refinanced in full, eliminating the prior tranche and consolidating debt under the 2025 Term B Facility
- Interest pricing tied to one-month Term SOFR, which provides transparent market-based repricing
Negative
- Interest rate floor of 1.50% may result in higher effective rates if SOFR falls below the floor
- Key covenant, maturity, fee and amortization details are not disclosed in the provided excerpt, limiting assessment of credit impact
Insights
TL;DR: Borrower refinanced Term B debt into a 2025 facility with SOFR-based pricing and an interest-rate floor; structure appears routine for covenanted credit agreements.
The Fourth Amendment documents a classic refinancing of a leveraged "B" tranche: proceeds from a new 2025 Term B Loan Facility plus revolver draws repaid the Existing Term B Loans in full and covered fees. Pricing is set at one-month Term SOFR +100bps with a 1.50% floor, which signals lender protection against low-rate environments. The filing does not disclose covenant changes, maturity, amortization schedule, fees, or financial covenants, so material credit-impacting terms cannot be assessed from the provided text alone.
TL;DR: Legal amendment formalizes replacement of prior Term B facility; attached amended pages implement the contractual changes described.
The document reflects a standard credit agreement amendment process: amended pages are attached to incorporate the 2025 Term B Facility and related mechanics for refinancing the outstanding Term B debt. JPMorgan is named as Administrative Agent. The filing explicitly states the use of proceeds and the interest-rate formula, but it omits other legal and covenant details (e.g., representations, default provisions, guaranties), so legal risk or covenant drift cannot be judged from this excerpt.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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| Item 8.01 | Other Events |
On August 21, 2025 (the “Closing Date”), Bright Horizons Family Solutions LLC (the “Borrower”), a wholly-owned indirect subsidiary of Bright Horizons Family Solutions Inc. (the “Company”), entered into a Fourth Amendment to Second Amended and Restated Credit Agreement, by and among the Borrower, Bright Horizons Capital Corp., certain other subsidiaries of the Borrower, JPMorgan Chase Bank, N.A. (“JPM”), as Administrative Agent (as defined in the Amended Credit Agreement (as defined below)) and the Lenders (as defined therein) party thereto (the “Amendment”), which attaches the amended pages of the Second Amended and Restated Credit Agreement (as amended by the Amendment) as an annex thereto.
The Amendment amends the Borrower’s existing Second Amended and Restated Credit Agreement, dated as of November 23, 2021, by and among the Borrower, Bright Horizons Capital Corp., JPM, as Administrative Agent and L/C Issuer, the Lenders and other parties party thereto from time to time (as amended by the First Amendment to Second Amended and Restated Credit Agreement, dated as of December 21, 2022, the Second Amendment to Second Amended and Restated Credit Agreement, dated as of December 11, 2024 and the Refinancing Amendment, dated as of April 17, 2025, the “Existing Credit Agreement”). The Existing Credit Agreement, as amended by the Amendment, is referred to herein as the “Amended Credit Agreement”. Capitalized terms herein not otherwise defined have the meaning ascribed to them in the Amended Credit Agreement.
The Amended Credit Agreement provides for, among other things, a new term “B” loan facility in an aggregate principal amount of $450,000,000 (the “2025 Term B Loan Facility” and the loans thereunder, the “2025 Term B Loans”), which refinanced the existing term “B” loans (the “Existing Term B Loans”). The proceeds of the 2025 Term B Loans, together with the proceeds of revolving loans drawn on the Closing Date, were used to refinance in full all of the outstanding principal amount of the Existing Term B Loans (including accrued and unpaid interest) and to pay all related fees and expenses.
Borrowings under the 2025 Term B Loan Facility bear interest at the same rate as the Existing Term B Loans, which is a rate per annum equal to the Base Rate plus a margin of 0.75% or Term SOFR plus a margin of 1.75%. The Term SOFR option is one, three or six month SOFR, as selected by the Borrower, or, with the approval of the applicable lenders, twelve months or less than one month Term SOFR, subject to an interest rate floor of 0.00%. The Base Rate is the highest of (x) the prime rate quoted by The Wall Street Journal, (y) the greater of the federal funds rate and the overnight bank funding rate, in either case, plus 0.50%, and (z) one-month Term SOFR plus 1.00%, subject to an interest rate floor of 1.50%.
The 2025 Term B Loan Facility now matures on August 21, 2032 and, as a result, the revolving loan facility available to the Borrower under the Amended Credit Agreement now matures on April 17, 2030. The 2025 Term B Loan Facility is guaranteed by the same guarantors and same collateral as securing the Existing Credit Agreement.
JPM acted as left lead arranger and bookrunner and BofA Securities, Inc., Wells Fargo Securities LLC, Citizens Bank, N.A. and PNC Capital Markets LLC acted as joint lead arrangers and joint bookrunners for the 2025 Term B Loan Facility.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, which is filed as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference into this Item 8.01.
| Item 9.01 | Financial Statements and Exhibits |
| (d) | Exhibits |
| 99.1 | Fourth Amendment to Second Amended and Restated Credit Agreement, dated as of August 21, 2025, by and among Bright Horizons Family Solutions LLC, Bright Horizons Capital Corp., certain other subsidiaries of the Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent and the Lenders party thereto. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| BRIGHT HORIZONS FAMILY SOLUTIONS INC. | ||||||
| Date: | August 21, 2025 | By: | /s/ Elizabeth Boland | |||
| Elizabeth Boland | ||||||
| Chief Financial Officer | ||||||
FAQ
What did Bright Horizons (BFAM) announce in this 8-K?
What interest rate applies to the 2025 Term B Loans?
Who is the administrative agent on the amended facility?
Were the proceeds used for any other purposes?
Does the filing disclose changes to covenants or maturities?
