American Public Education, Inc. Completes Refinancing with New $130 Million Senior Secured Credit Facility

~ Proactive Step, Strengthens Liquidity, Reduces Borrowing Costs by ~$3.7 Million While Accelerating Growth ~

CHARLES TOWN, W.Va., March 12, 2026 /PRNewswire/ -- American Public Education, Inc. (the "Company") (Nasdaq: APEI), a company that transforms lives, advances careers, and improves communities by providing online and campus-based postsecondary education to approximately 109,000 students, today announced that it has completed a comprehensive refinancing and entered into a new five-year, $130.0 million senior secured credit facility consisting of a $90.0 million senior secured term loan and a $40.0 million senior secured revolving credit facility (the "New Facility"). The New Facility reduces the Company's borrowing spread by 375 basis points based on current leverage levels and is expected to generate approximately $3.7 million in annual interest savings while strengthening APEI's balance sheet and providing increased financial flexibility to invest in its growth strategy.

The new Credit Agreement was entered into with PNC Bank, National Association, as administrative agent and collateral agent, PNC Capital Markets LLC, as joint lead arranger and sole bookrunner, M&T Bank, N.A. as a joint lead arranger, and a syndicate of lenders (collectively, the "Lenders").

The New Facility is scheduled to mature on March 9, 2031, and borrowings thereunder are subject to a revolver commitment fee ranging from 0.20% to 0.35% and bear interest at a rate equal to SOFR plus between 1.75% and 2.75% depending on the Company's consolidated total net leverage ratio.

Proceeds from the New Facility, together with cash on hand, were used to refinance the Company's existing $20.0 million senior secured revolving credit facility and to repay approximately $96.4 million outstanding under its prior $175.0 million senior secured term loan. The transaction reduces the Company's total outstanding debt, extends its maturity by over four years, and lowers its borrowing rate, providing the Company with the liquidity and flexibility to continue investing in enrollment growth across its three institutions.

"This transaction delivers three concrete improvements to our capital structure: an approximately 375 basis point reduction in our borrowing spread based on current leverage levels, a reduction in our total debt balance, and a five-year extension of our maturity runway to 2031," said Edward Codispoti, Executive Vice President and Chief Financial Officer of American Public Education, Inc. "Together, these improvements significantly lower our annual interest expense and reduce near-term cash outflows, giving us additional ability to invest in enrollment growth at Rasmussen, APUS, and Hondros and continue executing on our long-term strategy. The terms we achieved are a direct reflection of the progress we have made as a business and the confidence our banking partners have in APEI's trajectory."

In connection with the refinancing, the Company expects to record a one-time loss on extinguishment of debt of approximately $1.6 million in the first quarter of 2026, primarily related to the write-off of unamortized deferred financing costs. This non-cash charge reflects the elimination of the prior financing structure and the transition to the New Facility.

About American Public Education

American Public Education, Inc. (Nasdaq: APEI), through its institutions, American Public University System, or APUS, Rasmussen University, and Hondros College of Nursing, provides education that transforms lives, advances careers, and improves communities.

APUS, which operates through American Military University and American Public University, is the leading educator to active-duty military and veteran students* and serves approximately 89,000 adult learners worldwide via accessible and affordable higher education. Rasmussen University is a 126-year-old nursing and health sciences-focused institution that serves approximately 15,900 students across its 18 campuses in five states and online. It also has schools of Business, Technology, Design, Early Childhood Education, and Justice Studies.

Hondros College of Nursing focuses on educating pre-licensure nursing students at eight campuses (six in Ohio, one in Indiana, and one in Michigan). It is the largest educator of PN (LPN) nurses in the state of Ohio** and serves approximately 4,000 total students.

Both APUS and Rasmussen University are institutionally accredited by the Higher Learning Commission (HLC), an institutional accreditation agency recognized by the U.S. Department of Education. Hondros College of Nursing is accredited by the Accrediting Bureau of Health Education Schools (ABHES).   

*Based on FY 2023 Department of Defense tuition assistance data, as reported by Military Times, and Veterans Administration student enrollment data as of 2024.

**Based on information compiled by the National Council of State Boards of Nursing and Ohio Board of Nursing.

Forward Looking Statements

Statements made in this presentation regarding American Public Education, Inc. or its subsidiary institutions ("APEI" or the "Company") that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. Forward-looking statements include, without limitation, statements regarding expectations for growth, registration, enrollments, demand, revenues, net income, earnings per share, EBITDA and adjusted EBITDA, adjusted EBITDA margin, debt refinancing and share repurchase program, the growth and profitability of APEI, and related growth strategies, plans with respect to and future impacts of recent, current and future initiatives, including the planned combination of American Public University System, Rasmussen University and Hondros College of Nursing into one consolidated institution, and the impact of the U.S federal government shutdown in the fourth quarter of 2025.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: APEI's failure to comply with regulatory and accrediting agency requirements, including the "90/10 Rule", and to maintain institutional accreditation and the impacts of any actions APEI may take to prevent or correct such failure; changes in the post-secondary education regulatory environment as a result of U.S. federal elections, including any changes by or as a result of actions of the current administration to the operations of the Department of Education or changes to or the elimination or implementation of laws, regulations, standards, policies, and practices; potential or actual government shutdowns, including the U.S federal government shutdown in the fourth quarter of 2025, uncertainties in the estimated impact of the shutdown on APEI and its prospective and current students, and APEI's inability to mitigate these impacts; government budget and federal workforce uncertainty; the impact, timing, and projected benefits of the planned combination of APUS, RU, and HCN into one consolidated institution; APEI's dependence on the effectiveness of its ability to attract students who persist in its institutions' programs; changing market demands;  declines in enrollments at APEI's subsidiaries; APEI's inability to effectively market its institutions' programs; APEI's inability to maintain strong relationships with the military and maintain course registrations and enrollments from military students; the loss or disruption of APEI's ability to receive funds under Title IV or TA programs or the reduction, elimination, or suspension of federal funds; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; APEI's need to successfully adjust to future market demands by updating existing programs and developing new programs; APEI's loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid; economic and market conditions and changes in interest rates; difficulties involving acquisitions; APEI's indebtedness, including the refinancing thereof; APEI's dependence on and the need to continue to invest in its technology infrastructure, including with respect to third-party vendors; the inability to recognize the intended benefits of APEI's cost savings and reduction and revenue generating efforts; APEI's ability to manage and limit its exposure to bad debt; and the various risks described in the "Risk Factors" section and elsewhere in APEI's Annual Report on Form 10-K for the year ended December 31, 2024, as supplemented by those risks described in the "Risk Factors" section and elsewhere in APEI's Annual Report on Form 10-K for the year ended December 31, 2025 to be filed today, March 12, 2026, and in other filings with the SEC. You should not place undue reliance on any forward-looking statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.

Company Contact
Frank Tutalo
Associate Vice President, Public Relations
American Public Education, Inc.
[email protected]

Investor Relations
Shannon Devine
MZ North America
Direct: 203-858-1945
[email protected]

SOURCE American Public Education, Inc.