Apollo Group Inc. has entered into a 5-year $625 million revolving credit agreement with JPMorgan Chase Bank, according to a company filing today with the U.S. Securities and Exchange Commission.
The deal allows the Phoenix educational institution to increase the amount by up to an additional $375 million. This new credit agreement replaces Apollo Group’s existing $500 million senior revolving credit facility.
The credit agreement may be used for revolving loans both in U.S. dollar denominations as well as certain foreign currencies and letters of credit.
Also in the same 8-K filing, Apollo Group mentioned that it has been contacted by the Division of Enforcement of the SEC requesting documents and information relating to certain stock sales by company insiders and the filing of its 8-K on Feb. 28, which announced that new “degreed” enrollment growth at its University of Phoenix was less than previously expected.
“We have robust policies and procedures regarding insider trading and we intend to fully and voluntarily cooperate with the SEC,” according to the filing. “We cannot predict the eventual scope or outcome of this preliminary investigation.”