Teaching Strategies sets talk on first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 4 – Teaching Strategies (Foundational Education Group Inc.) released price talk on its $320 million seven-year covenant-lite first-lien term loan (B2) and $115 million eight-year covenant-lite second-lien term loan (Caa2) with its lender call on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 375 basis points to 400 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 650 bps to 675 bps with a 0.5% Libor floor and a discount of 99, the source said.

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.

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 the close of business on Aug. 17, 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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