UTI Lands $200M Revolving Credit Facility with Major Banking Syndicate
Universal Technical Institute (UTI) has secured a new revolving line of credit agreement with a syndicate of five major banks, including Fifth Third Bank, JPMorgan Chase, Truist, Citi, and PNC. The deal provides UTI with $200 million in funding, up from its previous $125 million facility, with options for additional incremental facilities worth up to $75 million.
The agreement has a five-year term expiring in August 2031 and allows the company to draw on the funds as needed for working capital management, internal initiatives, acquisitions, and other activities related to its North Star Strategy. This strategy aims to address labor shortages in various industries by providing education and training programs.
According to Bruce Schuman, UTI's EVP and CFO, the new credit facility is a significant milestone in the company's financial evolution and demonstrates the confidence of the participating banks in UTI's business model and outlook. The deal also underscores the expertise and resources available to the company through its partnerships with these leading financial institutions.