Teaching Strategies to launch $435 million of term loans on Wednesday

By Sara Rosenberg

New York, Aug. 3 – Teaching Strategies (Foundational Education Group Inc.) is scheduled to hold a lender call at 10 a.m. ET on Wednesday to launch $435 million of term loans, according to a market source.

The debt consists of a $320 million seven-year covenant-lite first-lien term loan and a $115 million eight-year covenant-lite second-lien term loan, the source said.

Deutsche Bank Securities Inc., KKR Capital Markets, Barclays and Macquarie Capital (USA) Inc. are the bookrunners on the deal, with Deutsche the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source added.

Proceeds will be used to help fund the buyout of the company by KKR from Summit Partners.

Teaching Strategies is a provider of curriculum, assessment and family engagement tools to the early childhood education market.

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