By Paul A. Harris
Portland, Ore., Feb. 12 – Ascend Learning, LLC priced an upsized $350 million issue of 6 7/8% mirror notes due Aug. 1, 2025 (Caa2/CCC) at 95 to yield 7.878%, according to market sources.
The issue price came at the rich end of price talk in the 94.5 area and richer than initial talk of 93 to 94, a bond trader said.
Barclays was the left lead bookrunner. BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the joint bookrunners.
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.
| Issuer: | Ascend Learning, LLC
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Aug. 1, 2025
|
| Securities: | Senior mirror notes due Aug. 1, 2025
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Co-manager: | Blackstone
|
| Coupon: | 6 7/8%
|
| Price: | 95
|
| Yield to maturity: | 7.878%
|
| Spread: | 530 bps
|
| First call: | Aug. 1, 2020 at 103.438%
|
| Equity clawback: | 40% at 106.875 until Aug. 1, 2020
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 94.5 area (plus or minus ½ point)
|
| Marketing: | Investor calls
|
| Sponsors: | Blackstone, Canada Pension Plan Investment Board
|
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