SkillSoft sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, April 3 - SkillSoft Ltd. disclosed price talk on its $900 million seven-year covenant-light first-lien term loan (B1) and $485 million eight-year covenant-light second-lien term loan (Caa2) with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 650 bps to 675 bps with a 1% Libor floor and a discount of 991/4, the source said.

In addition, the first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's $1,485,000,000 senior secured credit facility also includes a $100 million five-year revolver (B1).

Commitments are due on April 17, the source added.

Barclays, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Charterhouse Capital Partners LLP from Berkshire Partners, Advent International and Bain Capital and to refinance existing debt.

Closing is subject to conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

SkillSoft is a Dublin, Ireland-based provider of cloud-based learning solutions.

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