Meritas Schools to launch $245 million credit facility on Wednesday

By Sara Rosenberg

New York, June 3 - Meritas Schools Holdings LLC will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $245 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are the lead banks on the deal.

The facility consists of a $30 million five-year revolver and a $215 million six-year first-lien term loan, the source said.

Price talk on the term loan is Libor plus 550 basis points to 575 bps with a 1.25% Libor floor and an original issue discount of 99, the source continued.

The term loan has 101 soft call protection for one year.

Covenants include maximum leverage and fixed charge coverage ratios.

Proceeds will be used to refinance existing debt and for growth capital expenditures.

Commitments are due on June 19, the source added.

Meritas is a Northbrook, Ill.-based family of private college-preparatory schools.

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