- Deal requires Spring Hill to raise $5 million by Oct. 31
- Leadership is evaluating options to divest noncore real estate
Spring Hill College, the oldest Catholic educational institution in the southeast of the US, has struck a deal with its biggest creditor Nuveen that gives it more time to shore up its finances and overcome a default.
The Mobile, Alabama-based college entered into what’s known as a forbearance agreement with UMB Bank — the trustee for bondholders like Nuveen — after breaching a covenant, according to an Oct. 1 regulatory filing.
As part of such agreements, bondholders can agree to hold off on steps like lawsuits to give distressed borrowers more time to right their finances.
Bloomberg Markets
By Amanda Albright and Nic Querolo
October 2, 2024