Renaissance Learning firms term loan B spread at Libor plus 450 bps

By Sara Rosenberg

New York, Nov. 6 - Renaissance Learning Inc. finalized pricing on its $230 million six-year term loan B at Libor plus 450 basis points, the tight end of the Libor plus 450 bps to 475 bps talk, according to a market source.

In addition, a step-down was added under which pricing will drop to Libor plus 425 bps when leverage is below 3.0 times, the source said.

The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

The company's $250 million credit facility (B2/B+) also includes a $20 million revolver.

Allocations are expected to go out this week, the source said.

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

Proceeds will be used to refinance existing debt.

With this transaction, the company's existing first-lien term loan will be repaid at par and its existing second-lien term loan will be repaid at 103.

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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