Education Development Corporation Announces Fourth Amendment to Amended and Restated Loan Agreement That Establishes $ 10,000,000 Term Loan # 2

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Tulsa, Oklahoma – (Newsfile Corp. – November 24, 2021) – Educational Development Corporation (NASDAQ: EDUC) (“EDC”) (http://www.edcpub.com) today announced the implementation of the Fourth Amendment to and Loan Agreement updated.

Craig White, CEO of Educational Development Corporation, announced that the company has signed the Fourth Amendment to the amended and updated loan agreement with its primary lender. The amendment amends the loan agreement, establishing Term Loan # 2 with a principal amount of $ 10,000,000, changes the definition of LIBO rate and LIBOR margin, and adds benchmark replacement provisions.

According to Mr. White, “In fiscal 2021, we repaid approximately $ 9.3 million in long-term debt due to our increased cash flow and reduced inventory levels. In addition, in fiscal 2022, we amended our existing debt agreements to reduce the fixed rate on our remaining $ 10.9 million of long-term debt from 4.22% to 3.12%. Each of these actions reflects not only the strength of our cash flow, but also the positive relationship we have with our bank. This new $ 10.0 million loan replaces last year’s first debt extinguishment loan and will increase the availability of our $ 20 million line of credit used to fund our increased inventory levels. We expect our inventory levels to return to normalized levels during calendar year 2022 and provide liquidity that will allow us to repay our line of credit and continue our past practices of efficient liquidity allocations, including dividends, share buybacks, debt extinctions and acquisitions. “

About the Educational Development Corporation (EDC)

EDC is a publishing house specializing in children’s books. EDC is the exclusive commercial co-publisher in the United States of the range of children’s educational books produced in the United Kingdom by Usborne Publishing Limited (“Usborne”) and we also publish books exclusively through our Kane Miller Book Publisher property. (“Kane Miller”); two international publishers of award-winning children’s books. EDC’s current catalog contains over 2,000 titles, with new additions semi-annually. Usborne and Kane Miller products are sold through 4,000 outlets and independent consultants, who organize book shows in individual homes, through social media, book fairs with school and public libraries, direct sales and on the Internet.

Contact:
Educational Development Corporation
Craig White, (918) 622-4522

Investor Relations:
Three Part Consultants, LLC
Steven Hooser, (214) 872-2710

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105053


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