Education Advisory talks first-lien loan at Libor plus 350-375 bps

By Sara Rosenberg

New York, Sept. 7 – Education Advisory Board launched on Thursday its $540 million seven-year covenant-light first-lien term loan (B2/B) with price talk of Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 post allocation and the full margin thereafter, the source said.

Commitments are due on Sept. 21.

The company’s $870 million of credit facilities also include a $70 million five-year revolver (B2/B) and a $260 million privately placed eight-year second-lien term loan.

Macquarie Capital (USA) Inc. and Antares Capital are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Vista Equity Partners from the Advisory Board Co. for $1.55 billion, subject to customary adjustments.

Closing is expected by the end of 2017 or in early 2018, subject to the satisfaction or waiver of certain closing conditions, including U.S. antitrust clearance.

Education Advisory Board is a best practices firm that uses a combination of research, technology and services to improve the performance of educational institutions.

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