McGraw-Hill raises term loan B to $1.55 billion, sets pricing

By Sara Rosenberg

New York, July 21 – McGraw-Hill Education Inc. upsized its seven-year term loan B to $1.55 billion from a revised amount of $1.5 billion and an initial size of $1.15 billion, according to a market source.

Also, pricing on the term loan firmed at Libor plus 475 basis points, the high end of revised talk of Libor plus 450 bps to 475 bps, and up from initial talk in the range of Libor plus 425 bps to 450 bps, the source said.

The term loan still has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Previously in syndication, the discount on the term loan was set at the wide end of the 99 to 99.5 talk.

BofA Securities Inc., BMO Capital Markets, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Bank and UBS Investment Bank are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Platinum Equity from Apollo Global Management Inc. for about $4.5 billion.

Other funds for the transaction will come from $900 million of senior secured notes, which were downsized from a revised amount of $950 million and an initial amount of $1.15 billion, and $725 million of senior notes, which were downsized earlier from $875 million.

Closing is expected this summer, subject to customary conditions and regulatory approval.

McGraw-Hill is a New York-based learning science company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.