The Princeton Review Refinances and Expands Credit Facility With GE Capital Under More Favorable Terms

FRAMINGHAM, Mass., Aug. 11 /PRNewswire-FirstCall/ -- The Princeton Review, Inc. (Nasdaq: REVU), a leading provider of test preparation, educational support services and online career education services, has refinanced its existing $50 million credit facility with General Electric Capital Corporation as Administrative Agent ("GE Capital").

The amended and restated credit agreement consists of a $60 million senior secured term loan and a $12.5 million senior secured revolving credit facility. As compared to the previous $50 million credit facility, both new facilities provide The Princeton Review more favorable interest rates and greater flexibility in terms of financial maintenance covenants.

Borrowings under the Senior Credit Facilities bear interest through December 7, 2014 at a variable rate based upon, at the company's option, either LIBOR or the highest of (i) the prime rate, (ii) 3.0% plus the overnight federal funds rate, and (iii) 1.0% in excess of the three-month LIBOR rate, plus, in each case, an applicable margin.

"This transaction enhances our financial flexibility and further enables us to strategically expand our business," stated Michael Perik, President and CEO of The Princeton Review. "We recently delivered solid Q2 financial results in our two core businesses of Test Prep and Penn Foster, and we are now looking to complement this success by executing on our exciting ventures in post secondary education with the AFL-CIO and Massachusetts community colleges. We believe the fact that GE Capital expanded our existing credit facility at more favorable terms reflects their confidence in the strength and stability of our business and our outlook for growth."

The Princeton Review's obligations under the Senior Credit Facilities are guaranteed by all of the company's direct and indirect domestic subsidiaries.

About The Princeton Review

The Princeton Review (Nasdaq: REVU) has been a pioneer and leader in helping students achieve their higher education goals for more than 28 years through college and graduate school test preparation and private tutoring. With more than 165 print and digital publications and a free website, www.PrincetonReview.com, the Company provides students and their parents with the resources to research, apply to, prepare for, and learn how to pay for higher education. The Princeton Review partners with schools and guidance counselors throughout the U.S. to assist in college readiness, test preparation and career planning services, helping more students pursue postsecondary education. The Company also owns and operates Penn Foster Education Group, a global leader in online education.  Penn Foster provides career-focused degree and vocational programs in the fields of allied health, business, technology, education, and select trades through the Penn Foster High School and Penn Foster Career School (www.pennfoster.edu), which are headquartered in Scranton, PA.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934.  Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would," "will," "should," "plan," "project," "contemplate," "anticipate," or similar statements. Because these statements reflect The Princeton Review's current views concerning future events, these forward-looking statements are subject to risks and uncertainties. The Princeton Review's actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, demand for the company's products and services; the company's ability to compete effectively and adjust to rapidly changing market dynamics; the timing of revenue recognition from significant contracts with schools and school districts; market acceptance of the company's newer products and services; continued federal and state focus on assessment and remediation in K-12 education; and the other factors described under the caption "Risk Factors" in The Princeton Review's most recent Form 10-K filed with the Securities and Exchange Commission, and in its other filings. The Princeton Review undertakes no obligation to update publicly any forward-looking statements contained in this press release.

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SOURCE The Princeton Review, Inc.