Bright Horizons (NYSE:BFAM) Family Solutions Inc. (NYSE:BFAM), a $6.5 billion market cap company with annual revenues exceeding $2.6 billion, has successfully amended its senior secured credit facilities, as disclosed in a recent SEC filing. According to InvestingPro data, the company has demonstrated strong revenue growth of nearly 13% over the last twelve months.
The amendment was executed on December 11, 2024, between the company's wholly-owned subsidiaries, Bright Horizons Family Solutions LLC and Bright Horizons Capital Corp., with JPMorgan Chase (NYSE:JPM) Bank, N.A. serving as the administrative agent.
The modification introduced a new term "B" loan facility totaling $583.5 million, named the 2024 Term B Loan Facility, which replaced the existing Term B loans. This refinancing maneuver was aimed at reducing the outstanding principal amount of the previous loans.
InvestingPro data shows the company's total debt stands at $1.84 billion, with a current ratio of 0.61, indicating that managing short-term obligations remains a key focus.
The 2024 Term B Loans feature a reduced applicable rate per annum by 25 basis points, setting it at 2.00% for Term Benchmark Loans and 1.00% for ABR Loans. An additional rate reduction of 25 basis points is scheduled to trigger automatically if the company secures a corporate credit rating of at least Ba3 (stable) from Moody's (NYSE:MCO) and BB- (stable) from S&P.
The updated credit agreement maintains the original maturity date for the 2024 Term B Loan Facility at November 23, 2028, while the term loan A facility and the revolving credit facility are set to mature on November 23, 2026, and May 26, 2026, respectively. The collateral and guarantors from the existing credit agreement will continue to secure and guarantee the obligations under the new credit agreement.
This financial restructuring is expected to provide Bright Horizons with an improved interest rate scenario, which could potentially lead to cost savings. The details of the amendment are outlined in the full text of the Second Amendment, which is included as an exhibit to the SEC filing.
Bright Horizons, headquartered in Newton, Massachusetts, operates in the child day care services industry and is known for providing work-site child care to corporations, hospitals, universities, and government agencies. The company generates $370.5 million in EBITDA and maintains healthy operational metrics.
For deeper insights into Bright Horizons' financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
This article is based on information from a press release statement filed with the SEC.
In other recent news, Bright Horizons Family Solutions Inc. has reported an 11% increase in third-quarter revenue for 2024, reaching $719 million. The backup care segment played a significant role in this growth, witnessing an 18% rise in revenue to $202 million. The adjusted earnings per share (EPS) also saw a 26% growth, hitting $1.11.
Despite low single-digit enrollment growth and a seasonal drop in average occupancy, Bright Horizons has refined its full-year revenue guidance to approximately $2.675 billion and adjusted EPS to a range of $3.37 to $3.42.
In terms of analyst ratings, Baird upgraded Bright Horizons from Neutral to Outperform with a new price target of $140, while BMO Capital Markets raised the rating from Market Perform to Outperform, adjusting the price target to $125. Goldman Sachs maintained its Buy rating and increased its price target to $162 from $142, recognizing the company's robust performance.
The company's Full Service childcare segment showed a mixed outcome with a 9.4% revenue growth, falling short of the company's guidance. Looking ahead, Bright Horizons has narrowed its revenue guidance for this segment to the lower half of the prior range for 2024.
The company expects continued low single-digit enrollment growth and projects that price increases will taper from 5% to around 4% in 2025. These are recent developments in the company's performance and outlook.
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