FRANKLIN COVEY CO (FC): debt financing — Franklin Covey enters $70M credit agreement with KeyBank, replacing JPMorgan facility

FRANKLIN COVEY CO

New $70M credit facility: $7.5M term loan (replaces existing term loan) and $62.5M revolving line of credit.
Matures March 27, 2028; interest based on SOFR plus tiered margin of 1.50% to 2.75% depending on leverage ratio.
Financial covenants require leverage ratio <3.00x and fixed charge coverage ratio >1.15x; restricts distributions unless in compliance.
Replaces prior JPMorgan Chase credit agreement; KeyBank National Association serves as administrative agent and issuing lender.
Obligations secured by substantially all assets of the company and certain domestic subsidiaries.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

FRANKLIN COVEY CO incurred credit facility of up to $70.0 million with KeyBank National Association at SOFR plus 1.50% to SOFR plus 2.75% maturing March 27, 2028.

Instrument: credit facility
Principal: up to $70.0 million
Counterparty: KeyBank National Association
Rate: SOFR plus 1.50% to SOFR plus 2.75%
Maturity: March 27, 2028
Event: incurrence

Exact text from the filing

subsidiaries, as applicable, also entered into a Security Agreement, Intellectual Property Security Agreement, and Guaranty of Payment. The 2023 Credit Agreement provides up to $70.0 million in total credit, of which $7.5 million will be used to replace the outstanding term loan balance from the 2019 Credit Agreement. The remaining $62.5 million will be available to

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

FRANKLIN COVEY CO terminated 2019 Credit Agreement with JPMorgan Chase Bank, N.A. (effective 2023-03-27).

Action: termination
Agreement: credit facility
Counterparty: JPMorgan Chase Bank, N.A.
Effective: 2023-03-27

Exact text from the filing

On March 27, 2023, Franklin Covey Co. (the Company) entered into a new credit agreement (the 2023 Credit Agreement) with KeyBank National Association (KeyBank) leading a group of financial institutions (collectively, the Lenders), which replaced the Company’s previous credit agreement with JPMorgan Chase Bank, N.A. (the 2019 Credit Agreement).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

FRANKLIN COVEY CO entered into 2023 Credit Agreement with KeyBank National Association valued at $70.0 million (effective 2023-03-27).

Action: entry
Agreement: credit facility
Counterparty: KeyBank National Association
Value: $70.0 million
Effective: 2023-03-27

Exact text from the filing

On March 27, 2023, Franklin Covey Co. (the Company) entered into a new credit agreement (the 2023 Credit Agreement) with KeyBank National Association (KeyBank) leading a group of financial institutions (collectively, the Lenders), which replaced the Company’s previous credit agreement

View on SEC.gov

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Source: SEC EDGAR

accession 0000886206-23-000013

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