By Paul A. Harris
St. Louis, Jan. 28 - Knowledge Learning Corp. priced $260 million of 10-year senior subordinated notes (B3/B-) at par to yield 7¾%, according to a market source.
Price talk was 7¾% to 8%.
Credit Suisse First Boston, UBS Investment Bank and BNP Paribas were joint bookrunners for the Rule 144A offering. Guggenheim Capital Markets was the co-manager.
The company is also obtaining a $640 million credit facility and $200 million of equity from sponsors.
Proceeds will be used to purchase KinderCare Learning Centers Inc. for $550 million and repay existing debt at both companies.
The issuer is a Golden, Colo.-based provider of early childhood educational programs and services.
| Issuer: | Knowledge Learning Corp.
|
| Amount: | $260 million
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Credit Suisse First Boston, UBS Investment Bank, BNP Paribas
|
| Co-manager: | Guggenheim Capital Markets
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 361 basis points
|
| Call features: | Callable after Feb. 1, 2010 at 103.875, 102.583, 101.292, par on and after Feb. 1, 2013
|
| Equity clawback: | Until Feb. 1, 2008 for 35% at 107.75
|
| Trade date: | Jan. 28
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 7¾%-8%
|
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