WATERTOWN, MA -- (Marketwired) -- 04/13/17 -- Bright Horizons Family Solutions® Inc. (NYSE: BFAM), a leading provider of high-quality child care, early education and other services designed to help employers and families better address the challenges of work and family life, announced that its wholly owned subsidiary, Bright Horizons Family Solutions LLC, intends to amend its existing credit agreement.
The new $1,072 million term loan facility, which has been allocated to lenders, will be priced at par, will bear interest at a rate of LIBOR plus 2.25% (a reduction of 50 basis points from the applicable interest rate under the existing term loan facility) and will continue to have a maturity of November 7, 2023. The transaction is expected to result in annual interest savings of approximately $5 million based on the current principal amount of the term loan and the applicable rate under the existing credit agreement. The proceeds of the new term loan facility are expected to be used to repay all amounts outstanding under its existing $1,072 million term loan facility.
As part of the transaction, the Company is also seeking commitments to extend the maturity date of the $225 million revolving credit facility by three years to July 2022.
The transaction is expected to close in the first half of May 2017 and remains subject to customary closing conditions. As such, there is no assurance that the refinancing transactions will be completed on the terms described above or at all. Syndication of the loan facilities is being led by J.P. Morgan with Barclays and Bank of America Merrill Lynch also acting as joint lead arrangers.
This press release includes statements that express the Company's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements." The Company's actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms "believes," "expects," "may," "will," "should," "seeks," "projects," "approximately," "intends," "plans," "estimates" or "anticipates," or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the terms of the new term loan facility, our interest costs and potential savings, use of proceeds, potential commitments for the Company's revolving credit facility, and the timing and closing of the transaction. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company's risks and uncertainties are more fully described in the "Risk Factors" section of our Annual Report on Form 10-K filed on March 1, 2017, and other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.
About Bright Horizons Family Solutions® Inc.
Bright Horizons Family Solutions® is a leading provider of high-quality child care, early education and other services designed to help employers and families better address the challenges of work and family life. The Company provides center-based full service child care, back-up dependent care and educational advisory services to more than 1,100 clients across the United States, the United Kingdom, Ireland, the Netherlands, Canada and India, including 150 FORTUNE 500 companies and more than 80 of Working Mother magazine's 2016 "100 Best Companies for Working Mothers." Bright Horizons has been recognized 17 times as one of FORTUNE magazine's "100 Best Companies to Work For" and is one of the UK's Best Workplaces as designated by the Great Place to Work® Institute. Bright Horizons is headquartered in Watertown, MA. The Company's web site is located at www.brighthorizons.com.
CFO - Bright Horizons
MD - Solebury Communications Group
VP - Communications - Bright Horizons
Source: Bright Horizons Family Solutions