Edmentum Said to Seek $229.4 Million Term Loan to Refinance DebtMichael Amato
Edmentum Inc., a provider of online instructional programs, is seeking $229.4 million of loans to refinance debt, according to a person with knowledge of the transaction.
Both a $219.4 million term portion as well as a $10 million add-on term piece will pay interest at 4.75 points more than the London interbank offered rate, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
The $219.4 million term deal will be sold at par while the add-on piece will be sold at 99 cents on the dollar, according to the person.
Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, the person said.
Edmentum will be paying out the 101 call protection to existing lenders in connection with the refinancing.
Credit Suisse Group AG is arranging the transaction and will host a lender call tomorrow at 9:30 a.m. in New York, the person said.