Ascend Learning to sell $300 million mirror notes due 2025 on Tuesday

By Paul A. Harris

Portland, Ore., Feb. 11 – Ascend Learning, LLC plans to price $300 million of notes mirroring its existing senior notes due Aug. 1, 2025 (existing ratings Caa2/CCC+) on Tuesday afternoon, according to market sources.

The indicative coupon is 6 7/8%, the same as the notes in the existing issue.

Initial price talk is 93 to 94, a trader said.

The deal was scheduled to be marketed by means of a late Monday morning conference call with investors, followed by one-on-one investor calls on Monday afternoon and Tuesday morning.

Barclays is the left lead bookrunner for the Rule 144A and Regulation S for life offering. BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets LLC are the joint bookrunners. Blackstone is the co-manager.

The redemption features on the mirror notes are the same as those of the existing notes. The mirror notes become callable on Aug. 1, 2020 at 103.438.

The covenants are also the same as the existing notes due Aug. 1, 2025.

The Burlington, Mass.-based provider of educational content, software and analytics solutions plans to use the proceeds to fund a dividend to its shareholders and to put cash on its balance sheet.

The original $300 million issue of 6 7/8% senior notes due Aug. 1, 2025 priced at par in a $300 million issue in June 2017.

The sponsors are Blackstone and Canada Pension Plan Investment Board.

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