Teaching Strategies revises $320 million first-lien loan price talk

By Sara Rosenberg

New York, Aug. 17 – Teaching Strategies (Foundational Education Group Inc.) modified price talk on its $320 million seven-year covenant-lite first-lien term loan (B2/B-) to a range of Libor plus 400 basis points to 425 bps from a range of Libor plus 375 bps to 400 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 99 from 99.5, the source said.

The first-lien term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Talk on the company’s $115 million eight-year covenant-lite second-lien term loan (Caa2/CCC) remained at Libor plus 650 bps to 675 bps with a 0.5% Libor floor and a discount of 99.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

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.

Commitments are due at noon ET on Wednesday, extended from 5 p.m. ET on Tuesday, 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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