Renaissance $75 million second-lien comes at Libor plus 1,050 bps

By Sara Rosenberg

New York, Oct. 19 - Renaissance Learning Inc. set pricing on its $75 million second-lien term loan at Libor plus 1,050 basis points with a 1.5% Libor floor and an original issue discount of 96, according to a market source.

The loan is non-callable for one year, then at 103 in year two and 101 in year three, the source said.

The company's $270 million credit facility also includes a $20 million revolver (B1/BB-) and a $175 million first-lien term loan (B1/BB-).

As was previously reported, pricing on the first-lien term loan firmed at Libor plus 625 bps with a 1.5% floor and a discount of 96, versus initial talk of Libor plus 600 bps to 625 bps with a 1.5% floor and a discount of 96 to 97.

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

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

Proceeds were used to help 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 aggregate purchase price is about $455 million.

Other funds came from $215.8 million of equity.

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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