Edmentum launches $221 million first-lien term loan to investors

By Sara Rosenberg

New York, Dec. 5 - Edmentum Inc. (formerly known as Plato Learning) held a call at 2:30 p.m. ET on Thursday to launch a $221 million first-lien term loan due May 2018, according to a market source.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are the leads on the deal.

The term loan is talked at Libor plus 450 basis points with a 1% Libor floor and a par offer price, the source said.

The loan has 101 soft call protection for one year and amortization of 1% per annum.

Covenants include maximum leverage and minimum interest coverage ratios.

Proceeds will be used to reprice an existing term loan from Libor plus 475 bps with a 1.25% Libor floor, and take down the amortization from 5% per annum.

Existing lenders will get repaid at 101 with the repricing, the source added.

Commitments are due on Dec. 16.

Edmentum is a Minneapolis-based provider of online curriculum.

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