Education Development Corporation Announces New Loan Agreement

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Tulsa, Oklahoma–(Newsfile Corp. – August 11, 2022) – Educational Development Corporation (NASDAQ: EDUC) (“EDC”) ( announced today that the company has signed a new credit agreement (“loan agreement”) with BOKF, NA dba Bank of Oklahoma. The New Loan Agreement establishes (1) a fixed rate term mortgage loan in the principal amount of $15,000,000 (the “Fixed Rate Term Loan”), (2) a fixed rate mortgage term loan in the principal amount of $21,000,000 (the “Floating Rate Term Loan Term Loan”), and (3) a revolving promissory note in the principal amount of up to $15,000,000 (the “Revolving Loan”).

Along with the new loan agreement, the company has repaid its loans from its former lender, MidFirst Bank, and will immediately transfer its cash and other financial services to Bank of Oklahoma.

Mr. White commented: “We appreciate the support we have received from MidFirst Bank over the past seven years, where we have grown from $35,000,000 in sales to $204,000,000 in sales. They have been an excellent financial partner in supporting our growth and we thank them for that. .”

Mr. White concluded: “Our new banking relationship will help strengthen our balance sheet, improve our financial results and further support our future growth. With our new lender, Bank of Oklahoma, we will have increased borrowing capacity with reduced interest rates on borrowings. . The increased capacity comes from a larger combined debt facility and an expanded definition of our eligible assets associated with our revolving loan. We have also decided to replace some of our revolver, long term equipment and construction debt with longer term loans secured by our real estate Our new term loans have reduced monthly debt payments, lower interest rates, fewer restrictions on future investments, such as dividend payments and stock redemptions, and fewer financial covenants In addition, the new $21,000,000 variable rate term loan allows for prepayments without penalties, which we expect to utilize as our inventory levels continue to normalize over the next 15 months. recite this vote of confidence from Bank of Oklahoma in our people, our platform and our strategy. I would also like to thank our team for their hard work in implementing this new financial partnership.”

About the Education Development Corporation (EDC)

EDC is a publishing house specializing in children’s books. EDC is the exclusive distributor of Usborne Publishing Limited (“Usborne”) children’s books in the United States and the exclusive owner and publisher of Kane Miller Books (“Kane Miller”); two award-winning international publishers of children’s books. EDC’s current catalog contains nearly 2,000 titles, with new additions every six months. The products are sold via 4,000 points of sale and by independent consultants, who organize exhibitions of books in private homes, via social networks, book fairs with school and public libraries, direct sales and on the Internet.

Education Development Corporation
White Craig, (918) 622-4522

Investor Relations:
Three-Part Advisors, LLC
Steven Hooser, (214) 872-2710

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