Renaissance reveals price talk on first- and second-lien term loans

By Sara Rosenberg

New York, May 9 – Renaissance Learning disclosed price talk on its $705 million seven-year first-lien term loan (B-) and $335 million eight-year second-lien term loan (CCC) with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 325 basis points to 350 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 700 bps to 725 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1.12 billion of credit facilities also include an $80 million five-year revolver (B-).

Barclays, Jefferies LLC, Macquarie Capital (USA) Inc., BMO Capital Markets and Nomura are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on May 18, the source added.

Proceeds will be used to help fund the buyout of the company by Francisco Partners from Hellman & Friedman and its other stockholders.

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

Renaissance is a Wisconsin Rapids, Wis.-based pre-K–12 learning analytics company.

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