Cambium Learning wraps $130 million second-lien term loan at 94 OID

By Sara Rosenberg

New York, Jan. 15 – Cambium Learning Group Inc. completed syndication of its $130 million eight-year second-lien term loan (Caa2/CCC/CCC+) at an original issue discount of 94, according to a market source.

Pricing on the second-lien term loan is Libor plus 850 basis points with a 0% Libor floor.

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

During syndication, the discount on the second-lien term loan widened from revised talk of 95 and initial talk of 99.

The company’s $500 million of credit facilities also include a $50 million revolver (B2/B-/BB) and a $320 million seven-year first-lien term loan (B2/B-/BB).

Pricing on the first-lien loan is Libor plus 450 bps with 0% Libor floor, and it was sold at an original issue discount of 95. The loan has 101 soft call protection for one year.

The discount on the first-lien term loan was changed from 99.5 during syndication, and the call protection was extended from six months.

Allocations on the first-lien term loan went out in December.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays and BMO Capital Markets led the debt.

Proceeds were used to help fund the recently completed buyout of the company by Veritas Capital for $14.50 in cash per share.

Cambium is a Dallas-based educational technology solutions company.

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