Renaissance firms $230 million second-lien loan at Libor plus 700 bps

By Sara Rosenberg

New York, April 2 - Renaissance Learning Inc. finalized pricing on its $230 million eight-year second-lien covenant-light term loan (Caa2/CCC) at Libor plus 700 basis points, the wide end of the Libor plus 675 bps to 700 bps talk, according to a market source.

The second-lien term loan still has a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

Meanwhile, the $475 million seven-year first-lien covenant-light term loan (B1/B-) saw its 101 soft call protection extended to one year from six months, but pricing unchanged at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/2, the source said.

The company's $745 million credit facility also includes a $40 million five-year revolver (B1/B-).

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman from the Permira funds for $1.1 billion and to refinance existing debt.

Other funds for the transaction will come from equity.

Closing is expected in the second quarter, subject to the waiting period under the HSR Act and customary conditions.

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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