Debt

Debt and short-term borrowings consist of the following as of August 31:



($ in thousands)	2011			2010
Bank Facility, see terms below	$	493,322		$	497,968
BPP Credit Facility, see terms below	47,603			52,925
Capital lease obligations	36,512			7,827
Other, see terms below	21,572			25,680
Total debt	599,009			584,400
Less short-term borrowings and current portion of long-term debt	(419,318		)	(416,361		)
Long-term debt	$	179,691		$	168,039

Aggregate debt maturities for each of the years ended August 31 are as follows:



($ in thousands)
2012	$	419,318
2013	150,651
2014	8,273
2015	7,970
2016	6,295
Thereafter	6,502
	$	599,009

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Bank Facility - In fiscal year 2008, we entered into a syndicated $500 million credit agreement (the “Bank Facility”). The Bank Facility is an unsecured revolving credit facility used for general corporate purposes including acquisitions and stock buybacks. The Bank Facility has an expansion feature for an aggregate principal amount of up to $250 million. The term is five years and will expire on January 4, 2013. The Bank Facility provides a multi-currency sub-limit facility for borrowings in certain specified foreign currencies.

We borrowed substantially all of our credit line under the Bank Facility as of August 31, 2011 and 2010, which included £63.0 million denominated in British Pounds (equivalent to $103.2 million as of August 31, 2011). We repaid the U.S. dollar denominated debt on our Bank Facility of $390.1 million during the first quarter of fiscal year 2012 and $400.1 million during the first quarter of fiscal year 2011. We have classified the U.S. dollar denominated portion of our Bank Facility borrowings as short-term borrowings and the current portion of long-term debt on our Consolidated Balance Sheets because it was repaid subsequent to our respective fiscal year-ends.

The Bank Facility fees are determined based on a pricing grid that varies according to our leverage ratio. The Bank Facility fee ranges from 12.5 to 17.5 basis points and the incremental fees for borrowings under the facility range from LIBOR + 50.0 to 82.5 basis points. The weighted average interest rate on outstanding borrowings under the Bank Facility at August 31, 2011 and 2010 was 2.8% and 2.9%, respectively.

The Bank Facility contains affirmative and negative covenants, 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. In addition, there are covenants restricting indebtedness, liens, investments, asset transfers and distributions. We were in compliance with all covenants related to the Bank Facility at August 31, 2011.

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BPP Credit Facility - In fiscal year 2010, we refinanced BPP’s debt by entering into a £52.0 million (equivalent to $85.2 million as of August 31, 2011) secured credit agreement (the “BPP Credit Facility”). The BPP Credit Facility contains term debt, which was used to refinance BPP’s existing debt, and revolving credit facilities used for working capital and general corporate purposes. The term of the agreement is three years and will expire on August 31, 2013. The interest rate on borrowings varies according to a financial ratio and range from LIBOR + 250 to 325 basis points. The weighted average interest rate on BPP’s outstanding borrowings at August 31, 2011 and 2010 was 4.0% and 4.0%, respectively.

The BPP Credit Facility contains financial covenants that include minimum cash flow coverage ratio, minimum fixed charge coverage ratio, maximum leverage ratio, and maximum capital expenditure ratio. We were in compliance with all covenants related to the BPP Credit Facility at August 31, 2011.

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Other - Other debt includes $9.1 million of variable rate debt and $12.5 million of fixed rate debt as of August 31, 2011, and $8.7 million of variable rate debt and $17.0 million of fixed rate debt as of August 31, 2010. The interest rates on these debt instruments range from 5.0% to 7.3% with various maturities from 2012 to 2019. The weighted average interest rate on our other debt at August 31, 2011 and 2010 was 6.1% and 6.7%, respectively.

Refer to Note 11, Fair Value Measurements, for discussion of the fair value of our debt.