PNC Capital Markets and Wells Fargo Securities served as joint lead arrangers for the syndicate of lenders on the facility.
The new facility includes a $200 million revolving line of credit and an accordion feature that allows the company to increase commitments by up to $100 million. Borrowings under the company’s prior credit agreement were refinanced in full.
The new facility expires in November 2023, with no scheduled payments of principal until maturity, and bears interest at variable market rates, as defined in the agreement, plus a spread based on GP Strategies’ leverage ratio. Interest rates on the new credit facility are reduced between 25 and 50 basis points compared to the prior credit facility, depending on the current leverage ratio.
“We are very pleased with our new credit facility which provides us more favorable terms than our previous credit facility and will give us the capability to execute our long-term growth strategy,” said Michael Dugan, GP Strategies chief financial officer.
After entering into the new facility, GP Strategies had $128 million of borrowings outstanding and cash balances totaling $25 million.
GP Strategies provides training, digital learning solutions, management consulting and engineering services to improve the effectiveness of organizations.