Universal Technical Institute, a national company in workforce solutions for transportation, skilled trades, healthcare and dental, entered into a new credit agreement with Fifth Third Bank as lender and as administrative agent, joint lead arranger and sole bookrunner; JPMorgan Chase Bank as lender and joint lead arranger, Truist Bank as lender; Truist Securities as joint lead arranger; and Citibank and PNC Bank as lenders.
The new credit agreement, which refinances and replaces the company’s existing credit facility with Fifth Third Bank in its entirety, provides for a senior secured revolving credit facility of $200 million (up from $125 million in the existing facility), with a sublimit of $15 million for swingline loans and $75 million for letters of credit (up from $20 million in the existing facility). The new facility also includes capacity for uncommitted incremental facilities, whether in the form of incremental term facilities or an increase to the existing revolving facility, of up to an aggregate amount for all incremental facilities of $75 million. The facility has a five-year term expiring in August 2031.
“This new revolving credit facility is another significant milestone in Universal Technical Institute’s successful financial evolution, and we are very pleased with the terms of the agreement and the incremental partnerships of this bank syndicate,” Bruce Schuman, executive vice president, chief financial officer at Universal Technical Institute, said. “It underscores the confidence these respected firms have in our company as we execute our North Star Strategy to address America’s labor shortages, and puts at our disposal the expertise and resources of some of the country’s leading financial institutions.”
The company expects to use the revolving credit facility to support both current and future business needs, which may include working capital management and internal initiatives, acquisitions and other activities related to its North Star Strategy of growth, diversification and optimization.
