Nelnet Inc.

09/22/2021 | Press release | Distributed by Public on 09/22/2021 14:52

Amended And Restated Credit Agreement (Form 8-K)

Entry into a Material Definitive Agreement.
On September 22, 2021, Nelnet, Inc. (the "Company") entered into a Third Amended and Restated Credit Agreement (the "Amended and Restated Credit Agreement") for its existing unsecured line of credit with U.S. Bank National Association, as Administrative Agent for the lenders, and the lender parties thereto.
Under the amended terms, the following provisions of the Amended and Restated Credit Agreement were modified:
•The maturity date was extended from December 16, 2024 to September 22, 2026.
•The facility size increased from $455.0 million to $495.0 million. The amended terms also increased the accordion feature of the facility to provide that the Company may increase the aggregate financing commitments, through the existing lenders and/or through new lenders, up to a total of $737.5 million.
•The cost of funds decreased 25.0 basis points and 2.5 basis points for drawn and undrawn amounts, respectively, based on the Company's current credit ratings. The amended terms also include customary provisions to provide for replacement of LIBOR with an alternative benchmark rate when LIBOR ceases to be available.
•The provisions for secured recourse indebtedness were expanded to increase the limit on the aggregate amount of secured recourse indebtedness from 5 percent of the Company's consolidated net worth to 10 percent.
•The provisions for permitted investments were expanded to increase the aggregate amount of permitted investments from 40 percent of the Company's consolidated net worth to 50 percent.
•The provisions for loans owned by the Company other than federally insured student loans originated under the Federal Family Education Loan Program ("FFELP") were revised to replace the limit of $850 million on non-FFELP loans owned by the Company with a limit of 50 percent of the Company's consolidated net worth on non-FFELP loans owned by the Company with FICO scores of less than 700.
As of September 22, 2021, no amounts were outstanding on the unsecured line of credit.
The foregoing summary of the amendment to the provisions reflected in the Amended and Restated Credit Agreement does not purport to be a complete description of all of the amended provisions of the facility, and is qualified in its entirety by the complete text of the Amended and Restated Credit Agreement, a copy of which is filed with this report as Exhibit 10.1 and is incorporated by reference herein.
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information related to the Amended and Restated Credit Agreement discussed under Item 1.01 above is hereby incorporated by reference into this Item 2.03.


Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed as part of this report:

# Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K.