McGraw-Hill to launch roughly $1.66 billion credit facility on Monday

By Sara Rosenberg

New York, April 15 – McGraw-Hill Global Education Holdings LLC is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Monday to launch a $1,655,000,000 credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal.

The facility consists of a $350 million five-year revolver and a $1,305,000,000 six-year first-lien covenant-light term loan, the source said.

Price talk on the term loan is Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99, the source said.

Proceeds will be used to refinance existing debt, merge McGraw-Hill School Education into the McGraw-Hill Global Education credit group and fund a dividend, the source added.

Commitments are due on April 28.

McGraw-Hill is a New York-based provider of education materials.

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