Renaissance Learning talks first-lien loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, Sept. 30 - Renaissance Learning Inc. is talking its $310 million seven-year first-lien term loan (B1/B+) at Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

Talk on the $120 million 71/2-year second-lien term loan (Caa1/CCC+) is Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 981/2.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source said.

The company's $450 million credit facility also provides for a $20 million five-year revolver (B1/B+).

RBC Capital Markets LLC and BMO Capital Markets Corp. are the lead banks on the deal that launched with a bank meeting on Friday morning.

Proceeds will be used to refinance existing debt and fund a dividend.

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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