Barnes & Noble Education, Inc. Enters into Third Amendment and Waiver to Credit Agreement and First Amendment to Security Agreement to the Credit Agreement
April 05, 2021 at 04:31 pm EDT
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On March 31, 2021, Barnes & Noble Education, Inc. entered into a Third Amendment and Waiver to Credit Agreement and First Amendment to Security Agreement to the Credit Agreement, dated as of August 3, 2015, among the company, as the lead borrower, the other borrowers party thereto, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent for the lenders. The Amendment waives the FILO availability test condition to borrowing of the FILO loan under the credit agreement on April 1, 2021. The Amendment also increases the interest rate from the existing rate in the Credit Agreement by 25 basis points at each level of the existing pricing grid, institutes a minimum availability financial covenant at all times while the FILO Loan is outstanding of no less than the greater of 10% of the aggregate loan cap (which is the lesser of (a) the aggregate revolver commitment plus the aggregate FILO commitment under the Credit Agreement and (b) the borrowing base plus the outstanding FILO loan) and $25 million, institutes an anti-cash hoarding provision while the FILO loan is outstanding, which requires the Company to pay down the revolver to the extent cash is in excess of $50 million, subject to certain exclusions, expands the security interest granted to the lenders party to the Credit Agreement to all assets from the previous current asset collateral package, prohibits acquisitions and payment of dividends while the FILO loan is outstanding and certain other changes set forth in the Amendment.
Barnes & Noble Education, Inc. is a contract operator of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. The Company is also a textbook wholesaler, inventory management hardware and software provider, and a provider of digital education solutions. The Company's segments include Retail and Wholesale. The Retail Segment operates 1,366 college, university, and K-12 school bookstores, comprised of 774 physical bookstores and 592 virtual bookstores. The Wholesale Segment centrally sources, sells, and distributes new and used textbooks to approximately 3,000 physical bookstores, including its Retail segment's 774 physical bookstores and sources, and distributes new and used textbooks to its 592 virtual bookstores. Additionally, the Wholesale Segment sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 340 college bookstores.
Barnes & Noble Education, Inc. Enters into Third Amendment and Waiver to Credit Agreement and First Amendment to Security Agreement to the Credit Agreement
BARNES & NOBLE EDUCATION, INC. 
