Skillsoft to launch $700 million incremental term loans on Wednesday

By Sara Rosenberg

New York, Sept. 8 – Skillsoft Ltd. is set to hold a bank meeting on Wednesday to launch $700 million of incremental term loans, according to a market source.

The debt consists of a $515 million incremental first-lien term loan and a $185 million incremental second-lien term loan, the source said.

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the bookrunners on the financing, with Barclays the left lead on the first-lien loan and Morgan Stanley the left lead on the second-lien loan.

Proceeds will be used to fund the acquisition of SumTotal Systems LLC from Vista Equity Partners.

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

The company’s existing credit facility includes a $100 million revolver, a $900 million first-lien term loan due April 28, 2021 that is priced at Libor plus 350 basis points with a 1% Libor floor and has 101 soft call protection through April 28, 2015, and a $485 million second-lien term loan due April 28, 2022 that is priced at Libor plus 675 bps with a 1% Libor floor and has hard call protection of 102 through April 28, 2015 and 101 through April 28, 2016.

Skillsoft, a Charterhouse Capital Partners LLP portfolio company, is a Dublin-based provider of cloud-based learning services. SumTotal is a Gainesville, Fla.-based provider of integrated HR solutions.

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