v3.26.1
Note 8 - Long-Term Debt
 3 Months Ended
Apr. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

(8)    Long-Term Debt

 

Debt consisted of the following (in thousands):

 

  

April 30, 2026

  

January 31, 2026

 

Term Loans - current portion

 $6,404  $6,404 

Current maturities of long-term debt

 $6,404  $6,404 
         

Term Loans - long-term portion

 $573,788  $576,990 

Original issue discount - long-term portion

  (3,646)  (4,032)

Deferred financing costs - long-term portion

  (1,979)  (2,189)

Long-term debt

 $568,163  $570,769 

 

Term Loans

 

On July 16, 2021, a Skillsoft subsidiary, Skillsoft Finance II, Inc. (“Skillsoft Finance II”), entered into a Credit Agreement (the “Credit Agreement”), by and among Skillsoft Finance II, as borrower, another subsidiary - Skillsoft Finance I, Inc. (“Holdings”), the lenders party thereto and Citibank, N.A., as administrative agent and collateral agent, pursuant to which the lenders provided a term loan in the original principal amount of $480 million (the "Original Term Loan"). In connection with the closing of our Codecademy acquisition, Skillsoft Finance II entered into Amendment No. 1 to the Credit Agreement, dated as of April 4, 2022 (the “First Amendment”), among Skillsoft Finance II, Holdings, certain subsidiaries of Skillsoft Finance II, as guarantors, Citibank N.A., as administrative agent, and the financial institutions party thereto as Term B-1 Lenders, which amended the Credit Agreement (as amended by the First Amendment, the “Amended Credit Agreement”), which provided additional Term B-1 Loans in the original principal amount of $160 million. The Original Term Loan and the Term B-1 Loans were each drawn in full on their respective closing dates, and are scheduled to mature on July 16, 2028.

 

Our debt outstanding under the Amended Credit Agreement as of April 30, 2026 matures as shown below (in thousands):

 

Future principal payments due for fiscal years ended January 31:

    

2027 (nine months remaining)

 $3,202 

2028

  8,005 

2029

  568,985 

2030

  — 

2031

  — 

Thereafter

  — 

Total payments

  580,192 

Current portion

  (6,404)

Unamortized original issue discount and issuance costs

  (5,625)

Long-term portion

 $568,163 

 

Accounts Receivable Facility

 

We also have access to up to $75.0 million of borrowings under our accounts receivable credit agreement (the “A/R Agreement”) with First Citizens Bank and Trust Company, pursuant to which certain of our accounts receivable are pledged as security for loans made by participating lenders.

 

The interest rate on borrowings outstanding under the A/R Agreement was 6.28% on April 30, 2026. As of April 30, 2026, $1.0 million was drawn under the A/R agreement and is classified as “borrowings under accounts receivable facility” on the unaudited condensed consolidated balance sheet.

 

Refer to Note 12 “Long-Term Debt” to the 2026 AFS for additional information regarding the Amended Credit Facility and the A/R Agreement.