Debt

Debt and short-term borrowings consist of the following as of May 31, 2012 and August 31, 2011:



($ in thousands)	May 31, 2012			August 31, 2011
Revolving Credit Facility, see terms below	$	—		$	493,322
BPP Credit Facility, see terms below	38,439			47,603
Capital lease obligations	55,852			36,512
Other, see terms below	31,703			21,572
Total debt	125,994			599,009
Less short-term borrowings and current portion of long-term debt	(35,827		)	(419,318		)
Long-term debt	$	90,167		$	179,691

•

Revolving Credit Facility — During the third quarter of fiscal year 2012, we entered into a syndicated $625 million unsecured revolving credit facility (the “Revolving Credit Facility”), which replaced our previous revolving credit facility. The Revolving Credit Facility is used for general corporate purposes including acquisitions and share repurchases. The term is five years and will expire in April 2017. The Revolving Credit Facility provides a multi-currency sub-limit facility for borrowings in certain specified foreign currencies.

We borrowed substantially all of our credit line under our previous revolving credit facility as of August 31, 2011, which included £63.0 million denominated in British Pounds (equivalent to $103.2 million as of August 31, 2011). The weighted average interest rate on these borrowings at August 31, 2011 was 2.8%, and we repaid the entire amount during the first quarter of fiscal year 2012.

The Revolving Credit Facility fees are determined based on a pricing grid that varies according to our leverage ratio. The Revolving Credit Facility fee ranges from 25 to 40 basis points. Incremental fees for borrowings under the facility generally range from LIBOR + 125 to 185 basis points.

The Revolving Credit Facility contains various customary representations, covenants and other provisions, including the following financial covenants: maximum leverage ratio, minimum coverage interest and rent expense ratio, and a U.S. Department of Education financial responsibility composite score. We were in compliance with all applicable covenants related to the Revolving Credit Facility at May 31, 2012.

•

BPP Credit Facility — In fiscal year 2010, we refinanced BPP’s debt by entering into a £52.0 million (equivalent to $81.5 million as of May 31, 2012) secured credit agreement (the “BPP Credit Facility”). During the second quarter of fiscal year 2012, we amended the BPP Credit Facility reducing the amount available under the facility to £39.0 million (equivalent to $61.1 million as of May 31, 2012). The BPP Credit Facility contains term debt, which was used to refinance BPP’s debt in fiscal year 2010, and revolving credit facilities used for working capital and general corporate purposes. The BPP credit facility will expire on August 31, 2013.

The amended BPP Credit Facility contains financial covenants that include a minimum fixed charge coverage ratio and a maximum leverage ratio, which we were in compliance with as of May 31, 2012. The interest rate on borrowings is LIBOR + 175 basis points. The weighted average interest rate on BPP’s outstanding borrowings at May 31, 2012 and August 31, 2011 was 2.7% and 4.0%, respectively.

•

Other Debt — As of May 31, 2012, other debt includes the present value of our obligation to Carnegie Mellon University, which is discussed further at Note 5, Acquisitions. Other debt also includes $8.1 million of variable rate debt and $9.6 million of fixed rate debt as of May 31, 2012, and $9.1 million of variable rate debt and $12.5 million of fixed rate debt as of August 31, 2011. Excluding our obligation to Carnegie Mellon University, the weighted average interest rate on our other debt at May 31, 2012 and August 31, 2011 was 5.2% and 6.1%. respectively.

Refer to Note 8, Fair Value Measurements, for discussion of the fair value of our debt.