Nord Anglia lifts U.S. loan to $610 million, euro to €1.52 billion

By Sara Rosenberg

New York, Jan. 25 – Nord Anglia Education (Fugue Finance) upsized its U.S. term loan B due January 2028 to $610 million from $500 million and its euro term loan B due January 2028 to €1.515 billion from €1.3 billion, according to a market source.

In addition, pricing on the U.S. term loan was lowered to SOFR plus 450 basis points from revised talk of SOFR plus 475 bps and initial talk of SOFR plus 475 bps to 500 bps, the source said.

Also, the original issue discount on the euro term loan was set at 98, the tight end of revised talk of 97.5 to 98 and tighter than initial talk of 97.

Pricing on the euro term loan remained at Euribor plus 475 bps with a 0% floor.

The U.S. term loan still has a 0.5% floor, an original issue discount of 98 and amortization of 1% per annum, the euro term loan still has no amortization, and both term loans still have 101 soft call protection for six months.

Earlier in syndication, the discount on the U.S. term loan was tightened from 97 and the spread on the euro term loan firmed at the low end of the Euribor plus 475 bps to 500 bps talk.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the U.S. term loan, and HSBC is a joint bookrunner. HSBC, Deutsche Bank and JPMorgan are joint physical bookrunners on the euro term loan. Mandated lead arrangers on the loans are Citigroup Global Markets Inc., DBS, Goldman Sachs, Morgan Stanley Senior Funding Inc., Standard Chartered, BofA Securities Inc. and E. Sun. HSBC is the administrative agent.

Recommitments for the U.S. term loan were scheduled to be due at 11 a.m. ET on Wednesday and recommitments for the euro term loan were scheduled to be due at 8 a.m. ET on Wednesday, the source added.

Proceeds will be used to extend and refinance the company’s existing U.S. and euro first-lien term loans due September 2024 and, due to the upsizings, to repay $200 million of second-lien term loan borrowings and pay transaction fees and expenses.

BPEA EQT and CPP Investments are the sponsors.

Nord Anglia is a London-based K-12 schools platform.

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