Debt

Debt and short-term borrowings consist of the following as of November 30, 2011 and August 31, 2011:



($ in thousands)	November 30, 2011			August 31, 2011
Bank Facility, see terms below	$	—		$	493,322
BPP Credit Facility, see terms below	40,434			47,603
Capital lease obligations	40,752			36,512
Other, see terms below	33,151			21,572
Total debt	114,337			599,009
Less short-term borrowings and current portion of long-term debt	(27,598		)	(419,318		)
Long-term debt	$	86,739		$	179,691

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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, which included £63.0 million denominated in British Pounds (equivalent to $103.2 million as of August 31, 2011). We repaid the entire amount borrowed on our Bank Facility during the first quarter of fiscal year 2012.

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 was 2.8%.

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 November 30, 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 $80.7 million as of November 30, 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 November 30, 2011 and August 31, 2011 was 4.1% and 4.0%, respectively.

Subsequent to November 30, 2011, we amended the existing BPP Credit Facility. The amendment reduced the amount available under the credit facility to £39.0 million, and decreased the interest rate on outstanding borrowings. The amended BPP Credit Facility contains modified financial covenants that include a minimum fixed charge coverage ratio and a maximum leverage ratio, with which we were deemed to be in compliance as of the November 30, 2011 testing date.

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Other Debt — As of November 30, 2011, other debt includes the present value of our obligation to Carnegie Mellon University, which is discussed further at Note 5, Acquisitions. Other also includes $8.0 million of variable rate debt and $10.5 million of fixed rate debt as of November 30, 2011, 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 November 30, 2011 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.