Quarterly report [Sections 13 or 15(d)]

Note 7 - Long-term Debt

v3.25.1
Note 7 - Long-term Debt
 3 Months Ended
Apr. 30, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

(7)    Long-Term Debt

 

Debt consisted of the following (in thousands):

 

   

April 30, 2025

    

January 31, 2025

  

Term Loans - current portion

   $ 6,404     $ 6,404  

Current maturities of long-term debt

   $ 6,404     $ 6,404  
                 

Term Loans - long-term portion

   $ 580,192     $ 581,793  

Original issue discount - long-term portion

     (5,159 )     (5,527 )

Deferred financing costs - long-term portion

     (2,801 )     (2,999 )

Long-term debt

   $ 572,232     $ 573,267  

 

On July 16, 2021, a Skillsoft subsidiary, Skillsoft Finance II, Inc. (“Skillsoft Finance II”), entered into a Credit Agreement (the “Credit Agreement”), by and among Skillsoft Finance II, as borrower, another subsidiary - Skillsoft Finance I, Inc. (“Holdings”), the lenders party thereto and Citibank, N.A., as administrative agent and collateral agent, pursuant to which the lenders provided a $480 million term loan facility. In connection with the closing of the Codecademy acquisition, Skillsoft Finance II entered into Amendment No. 1 to the Credit Agreement, dated as of April 4, 2022 (the “First Amendment”), among Skillsoft Finance II, Holdings, certain subsidiaries of Skillsoft Finance II, as guarantors, Citibank N.A., as administrative agent, and the financial institutions party thereto as Term B-1 Lenders, which amended the Credit Agreement (as amended by the First Amendment, the “Amended Credit Agreement”), which provided an additional $160 million of Term B-1 Loans.

 

Our debt outstanding under the Amended Credit Agreement as of April 30, 2025 matures as shown below (in thousands):

 

Future principal payments due for fiscal years ended January 31:

        

2026 (nine months remaining)

   $ 3,202  

2027

     6,404  

2028

     8,005  

2029

     568,985  

2030

     —  

Thereafter

     —  

Total payments

     586,596  

Current portion

     (6,404 )

Unamortized original issue discount and issuance costs

     (7,960 )

Long-term portion

   $ 572,232  

 

We also have access to up to $75.0 million of borrowings under our accounts receivable credit agreement (the “A/R Agreement”) with First Citizens Bank and Trust Company, pursuant to which certain of our accounts receivable are pledged as security for loans made by participating lenders.

 

The interest rate on borrowings outstanding under the A/R Agreement was 6.94% on April 30, 2025. As of April 30, 2025, $1.0 million was drawn under the A/R agreement and is classified as “borrowings under accounts receivable facility” on the condensed consolidated balance sheet.

 

Refer to Note 13 “Long-Term Debt” to the 2025 AFS for additional information regarding the Amended Credit Facility and the A/R Agreement.