Universal Technical Institute, Inc. filed a current report on August 18, 2026, disclosing that on August 12, 2026, it entered into a new senior secured revolving credit facility of up to $200 million with Fifth Third Bank as administrative agent and a group of lenders.

Key Highlights

  • Facility size: The new senior secured revolving credit facility provides up to $200 million, with a $15 million sublimit for swingline loans and a $75 million sublimit for letters of credit.
  • Maturity: Unless earlier terminated, the facility matures in August 2031.
  • Incremental capacity: The Credit Agreement includes capacity for uncommitted incremental facilities of up to $75 million in aggregate.
  • Interest rate range: The facility spread ranges from 1.50% to 2.25% for Term SOFR borrowings and from 0.50% to 1.25% for Base Rate borrowings, depending on the company's consolidated total net leverage ratio.
  • Unused line fee: The company is required to pay an unused line fee ranging from 0.20% to 0.35% per annum on undrawn commitments, also depending on the leverage ratio.
  • Refinancing: According to the filing, the Credit Agreement "refinances and replaces the Company's existing credit agreement in its entirety."

Universal Technical Institute's New Credit Agreement: Key Terms and Structure

According to the filing, Universal Technical Institute, Inc. (NYSE:UTI), a Delaware corporation, entered into the Credit Agreement on August 12, 2026, as borrower, together with certain of its subsidiaries as loan parties. The lenders include Fifth Third Bank, National Association, as administrative agent, joint lead arranger, and sole bookrunner; JPMorgan Chase Bank, N.A. as lender and joint lead arranger; Truist Bank as lender with Truist Securities, Inc. as joint lead arranger; and Citibank, N.A. and PNC Bank, National Association, as lenders.

The filing discloses that amounts borrowed under the facility will amortize on an interest-only basis during its term, with principal able to be borrowed, re-paid, and re-borrowed throughout, and with outstanding principal due and payable at maturity. The company disclosed that advances will bear interest at a floating rate equal to, at the company's option, either Term SOFR relating to quotations for 1 or 3 months plus an applicable margin, or the Base Rate plus an applicable margin.

Concurrent with entering the Credit Agreement, the filing states that the loan parties executed a Guaranty and Security Agreement for the benefit of the lenders, under which the loan parties guaranteed the company's payment obligations and secured those obligations with the assets of the loan parties, subject to certain exceptions. The Credit Agreement also contains various restrictive financial and nonfinancial covenants, including requirements to maintain a consolidated total net leverage ratio and a consolidated interest coverage ratio, and provides for customary events of default, according to the filing. The filing was signed by Bruce Schuman, Executive Vice President and Chief Financial Officer.

What Was Disclosed

Universal Technical Institute disclosed the execution of a new $200 million senior secured revolving credit facility dated August 12, 2026, replacing its prior credit agreement in full, with maturity in August 2031 and floating interest rates tied to Term SOFR or the Base Rate.