Renaissance sets first-lien term loan spread at Libor plus 625 bps

By Sara Rosenberg

New York, Oct. 18 - Renaissance Learning Inc. firmed pricing on its $175 million first-lien term loan (B1/BB-) at Libor plus 625 basis points, the wide end of the Libor plus 600 bps to 625 bps, according to a market source.

Also, the original issue discount came at 96, the high side of the 96 to 97 guidance, the source said.

The 1.5% Libor floor and 101 soft call protection for one year were left unchanged.

The company's $270 million credit facility also includes a $20 million revolver (B1/BB-) and a $75 million second-lien term loan.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the lead banks on the deal.

Proceeds, along with $215.8 million of equity, will be used to fund the buyout of the company by Permira Funds for $15 per share in cash for shares held by co-founders Terrance and Judith Paul, and $16.60 per share in cash for all other shares. The purchase price is about $455 million.

Closing is expected on Oct. 19. Shareholder approval for the transaction was obtained at a special meeting on Oct. 17.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of technology-based school improvement and student assessment programs for K-12 schools.

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