Item 1.01. Entry into a Material Definitive Agreement.
On January 31, 2019, Grand Canyon Education, Inc., a Delaware corporation (“GCE”), its wholly owned subsidiary, Orbis Education Services, LLC, a Delaware limited liability company (“Orbis Education”), as guarantor, and Bank of America, N.A,. as administrative agent, entered into a First Amendment (the “First Amendment”) to the Amended and Restated Credit Agreement, dated as of January 22, 2019, among GCE, Orbis Education, as guarantor, Bank of America, N.A. as administrative agent, swing line lender and letter of credit issuer, and the other lenders named therein (as amended, the “Credit Agreement”).
Under Section 2.16 of the Credit Agreement, GCE had the right, during the period from January 22, 2019 to March 31, 2019 (or such later date as agreed by the administrative agent) to increase the principal amount of the term loan and the aggregate revolving commitments by up to $50.0 million, from an aggregate of $250.0 million to up to an aggregate of $300.0 million (subject to certain conditions). Per the terms of the First Amendment, GCE was granted the right to increase the principal amount of the term loan and the aggregate revolving commitments by up to $75.0 million, from an aggregate of $250.0 million to up to an aggregate of $325.0 million (subject to certain other conditions).
On February 1, 2019, GCE, Orbis Education, as guarantor, Bank of America, N.A,. as administrative agent, and the other lenders named therein entered into a First Incremental Facility Amendment (the “First Incremental Facility Amendment”) to the Credit Agreement. Pursuant to the First Incremental Facility Amendment, GCE borrowed an incremental $56,250,000 principal amount of term loans and increased the aggregate revolving commitments by $18,750,000, thereby increasing the principal amount of the term loan borrowed to $243.75 million and the principal amount of the aggregate revolving commitments to $81.25 million. No other changes were made to the Credit Agreement.
The foregoing descriptions of the First Amendment and the First Incremental Facility Amendment do not purport to be complete and are qualified in their entirety by the full text of these agreements. Copies of the First Amendment and the First Incremental Facility Amendment will be timely filed as exhibits to an upcoming periodic report in accordance with applicable rules and regulations of the Securities and Exchange Commission.