Barnes & Noble Education entered into an agreement with its financial stakeholders and strategic partners on the terms of a refinancing that would extend the maturity of its debt facilities, amend certain credit facility covenants and modify certain other agreements. According to an 8K filed with the SEC, Bank of America is serving as administrative agent and collateral agent for the lenders of Barnes & Noble Education’s amended credit agreement.
“We are pleased to have worked constructively with our largest financial and strategic partners to reach a resolution that better positions us to accelerate the execution of our strategy for the benefit of BNED’s students, educators, faculties, alumni, fans, community members, institutions, employees and shareholders,” Michael P. Huseby, CEO of Barnes & Noble Education, said. “It’s an important time of year in higher education, and our top priority is being prepared to service our students and campus partners. This agreement provides us financial flexibility as we continue delivering on our strategic objectives and meeting our obligations with our schools and business partners. We look forward to continuing to meet the needs and expectations of the hundreds of institutions and millions of students who rely on BNED.”
As part of the agreement, Barnes & Noble Education is establishing a committee of its board of directors to continue the ongoing review of alternatives strategies available to the company, including but not limited to potential capital raises, asset divestitures or a sale of the business as well as pursuing its standalone growth plans. There can be no assurances regarding the timing, terms or structure of any potential outcome. In all scenarios being contemplated, Barnes & Noble Education will continue to focus on operating in service of its stakeholders and executing on its growth initiatives, particularly the acceleration of its First Day Complete courseware delivery model.
“We recognize the important role that BNED plays within the higher education ecosystem, and our board is committed to determining the best path forward for our business and stakeholders. As we move through this process, the entire BNED team remains focused on advancing our mission and serving our school partners, faculties and students across our footprint,” Huseby said.
Paul Hastings is serving as Barnes & Noble Education’s legal counsel and Houlihan Lokey is serving as its financial advisor.
