Skillsoft firms spread talk on $1.39 billion term loans at the wide end

By Paul A. Harris

Portland, Ore., April 21 - SkillSoft Ltd. firmed spread talk on $1.385 billion of term loans on Monday, according to a market source.

Talk on the $900 million seven-year covenant-light first-lien term loan (B1/B-) firmed at Libor plus 350 basis points, the wide end of the earlier 325 bps to 350 bps guidance. Price talk is 99.5.

The first-lien loan has 1% annual amortization.

A $485 million eight-year covenant-light second-lien term loan (Caa2/CCC) firmed at Libor plus 675 bps, the wide end of the 650 bps to 675 bps earlier guidance. Price talk is 99.25.

Recommitments are due at noon ET on Tuesday.

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).

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 services.

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