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KinderCare Learning Companies, Inc. (NYSE:KLC), currently trading at $9.95 near its 52-week low of $9.31, announced that on Tuesday its wholly owned subsidiary, KUEHG Corp., entered into an amendment to its existing credit agreement to reprice its first lien term loan and revolving credit facilities. The company’s stock has declined over 61% in the past year, reflecting ongoing financial challenges.
According to a statement based on a filing with the Securities and Exchange Commission, the repricing amendment, effective as of Tuesday, adjusts the interest rate on the first lien term loan facility to a variable rate equal to Term SOFR plus 2.75% per annum. The amendment also sets the interest rate for amounts drawn under the first lien revolving credit facility at Term SOFR plus an applicable rate ranging from 2.00% to 2.50% per annum. Fees on outstanding letters of credit will bear interest at the same applicable rate, determined by a pricing grid based on the company’s first lien net leverage ratio.
The amendment resets the soft call protection of 1.00% for certain repricing transactions on the repriced first lien term loan facility for six months following the effective date. All other terms of the credit agreement remain unchanged.
KinderCare Learning Companies, Inc. is headquartered in Lake Oswego, Oregon, and its common stock is listed on the New York Stock Exchange under the ticker KLC. This information is based on a press release statement included in the company’s recent SEC filing.
In other recent news, KinderCare Learning Companies reported its first-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $0.23, which exceeded analyst expectations. However, the company’s revenue of $668 million fell short of projections, raising concerns among investors. Despite the revenue shortfall, KinderCare maintained its full-year 2025 revenue guidance between $2.75 billion and $2.85 billion, with adjusted EBITDA expected to range from $310 million to $325 million. BMO Capital Markets and JPMorgan both adjusted their price targets for KinderCare, with BMO lowering it to $21 from $26 while maintaining an Outperform rating, and JPMorgan reducing it to $15 while keeping an Overweight rating. Analysts noted the company’s challenges with enrollment growth and pricing within the early childhood education industry but remained optimistic about the long-term demand for high-quality childcare. KinderCare’s management expressed confidence in the company’s growth strategy, highlighting plans to open new centers and expand existing programs. Additionally, the company reported a 2% year-over-year increase in revenue and a 12% rise in adjusted EBITDA, demonstrating operational efficiency. Despite macroeconomic uncertainties, KinderCare reaffirmed its commitment to achieving its financial targets for the year.
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