Item 1.01. Entry Into a Material Definitive Agreement
On October 26, 2009, TAL Advantage III, LLC, an indirect wholly owned subsidiary
of TAL International Group, Inc., entered into a $75 million asset backed credit
facility, which facility may be increased to $100 million under certain
circumstances. Funds are available under the facility on a revolving basis until
October 25, 2011, after which the notes issued under the facility convert to
term notes with a maturity date of October 25, 2015. The term notes amortize on
a level basis over the four year period to 60% of the outstanding balance. The
interest rate on the notes is LIBOR plus 4.25% during the two-year revolving
period. If the facility is not refinanced before the end of the revolving
period, then at the end of the revolving period the interest rate will increase.
The facility contains customary affirmative and negative covenants, financial
covenants, representations and warranties, and events of default, which are
subject to various exceptions and qualifications. The proceeds will be used to
finance the acquisition of equipment and for other general corporate purposes.
Item 2.03. Creation of Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant
The disclosure required by this item is included in Item 1.01 and is
incorporated herein by reference.
