Ascend Learning to sell upsized $350 million mirror notes on Tuesday, sets talk at 94.5 area

By Paul A. Harris

Portland, Ore., Feb. 12 – Ascend Learning, LLC upsized its offering of notes that mirror its existing senior notes due Aug. 1, 2025 (Caa2/CCC) to $350 million from $300 million, according to market sources.

Official price talk is in the 94.5 area, plus or minus ½ point, rich to initial talk of 93 to 94, a bond trader said.

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

Books close at noon ET on Tuesday, and the Rule 144A and Regulation S for life offering is set to price thereafter.

Barclays is the left lead bookrunner. 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.

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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