Item 1.01 Entry into a Material Definitive Agreement.
On December 12, 2016, Nelnet, Inc. (the “Company”) entered into Amendment No. 1 (the “Amendment”) to the Amended and Restated Credit Agreement dated as of October 30, 2015 (the “Amended and Restated Credit Agreement”) for the Company's $350 million unsecured line of credit with U.S. Bank National Association, as agent for the lenders, and the lender parties thereto. The Amended and Restated Credit Agreement was previously reported under Part II, Item 5 of the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015 filed by the Company on November 5, 2015.
Under the terms of the Amendment, the maturity date of the Amended and Restated Credit Agreement was extended from October 30, 2020 to December 12, 2021. The Amendment also revised certain definitions related to the borrower’s line of business, permitted acquisitions, and qualified receivables transactions. In addition, the cap for other non-specified permitted investments increased from 20 percent to 25 percent of the Company’s consolidated net worth, with the cap excluding all existing investments at September 30, 2016. The facility size of $350 million and cost of funds did not change as part of the Amendment. As of September 30, 2016, no amounts were outstanding under the unsecured line of credit and $350 million was available for future use.
The description above is a summary of the Amendment and is qualified in its entirety by the complete text of the Amendment, a copy of which is filed with this report as Exhibit 10.1, and is incorporated by reference herein.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information related to the $350 million unsecured line of credit discussed under Item 1.01 above is hereby incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed as part of this report:
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Exhibit
No.
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Description
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10.1
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Amendment No. 1 dated as of December 12, 2016 to the Amended and Restated Credit Agreement dated as of October 30, 2015, by and among Nelnet, Inc., U.S. Bank National Association, as Administrative Agent, and various lender parties thereto.
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10.2
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Annex I to Guaranty dated as of December 12, 2016 to the Amended and Restated Guaranty dated as of October 30, 2015 by Allo Communications LLC, a subsidiary of Nelnet, Inc., in favor of U.S. Bank National Association, as Administrative Agent.
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