On March 31, 2014 the Weighted Average Interest Rate was 3.0%, and then with the first amendment to the credit agreement, that was increased slightly. And then the rate was increased by second amendment increased to a minimum of 14.75%, plus the interest must be paid monthly instead of quarterly. Roughly speaking, the interest is five times higher, or more must be paid every month than what was being paid every quarter. It almost goes without saying that the principal balance is not going down, and that's especially so with ED's restrictions on use of cash in the operating agreement. Now instead of roughly $1M for the quarter in interest cash (and expense), CCi must pay more than that in a month. The interest payments are due on the 1st of every month. $15M is about 1% of historic annualized revenues ($1,400M). Likely your reduction in pay is going to debt servicing.
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Anonymous28697- We also need to know replacement: reenter & new enrollments.
Last term ECPO had 27,000 students. At the beginning of this term it was 16,000. As with any CCI school, retention is quite low. 50% would be generous. So, you can figure about 10,000 remain, conservatively. That's just one school. To call student numbers plummeting is an understatement. But, you'll likely never see any real numbers. CCI will 'fix' them. In fact, they've boasted an 80% retention rate, which is bullshit.
what is the current student count anyway? Better yet, anyone seen any trending / rate?
If you don't understand, that's ok, but realize that such an increase in the cost of capital is a big drain on cash, especially if the student count is decreasing.
What would be the point? The corporation's assets are already being liquidated.
OP - Good data, good analysis. Underscores the desperate nature of our financial scenario, and lends credibility to the notion that CCI will declare Chapter 7 before a sale is completed, before the teach-outs are done and well before the end of this calendar year. The point, 28676? As mentioned in many prior posts - don't wait for something good to come out of this for you. It is becoming increasingly unlikely. You may not like this info - or may not undersatnd it - but you would be unwise to ignore it.
Cash for interest is no big deal when you cannot afford toner.
There is none. Just copy and paste
Point?