Universal Technical Institute Enters $200M Secured Revolving Credit Facility

What Happened

• Universal Technical Institute, Inc. (UTI) announced on Aug 12, 2026 that it entered into a new Credit Agreement providing a senior secured revolving credit facility of up to $200 million, replacing its prior credit agreement. Fifth Third Bank acts as administrative agent and lead lender, with JPMorgan Chase, Truist, Citibank and PNC among the lenders. The Company filed the 8-K on Aug 18, 2026 and issued a press release the same day.

Key Details

• Facility size: $200 million revolving credit facility; $15 million swingline sublimit; $75 million letters of credit sublimit.
• Incremental capacity: up to $75 million of uncommitted incremental facilities.
• Term and repayment: facility matures August 2031; interest-only during the term with outstanding principal due at maturity (ability to borrow, repay and re-borrow).
• Pricing: borrower choice of Term SOFR (1- or 3-month) + margin (1.50%–2.25%) or Base Rate + margin (0.50%–1.25%), depending on consolidated net leverage; unused line fee 0.20%–0.35% per annum.
• Security and covenants: Loan Parties provided a Guaranty and Security Agreement securing obligations with their assets (subject to exceptions); the Credit Agreement includes customary restrictive covenants and financial tests (consolidated total net leverage and interest coverage ratios).

Why It Matters

• Liquidity and flexibility: the facility provides up to $200M of committed revolver availability (plus potential incremental capacity), giving UTI working capital and capital-structure flexibility through August 2031.
• Cost and covenant implications: interest margins and unused fees depend on leverage levels, so borrowing costs can vary with UTI’s leverage; the secured nature of the facility and financial covenants may affect asset availability and borrowing freedom.
• Replacement of prior facility: this agreement fully refinances UTI’s previous credit agreement, so investors should monitor covenant compliance, leverage trends, and actual revolver usage to assess near-term liquidity and financing costs.

Exhibits filed with the 8-K include the Credit Agreement, Guaranty and Security Agreement, and the press release.