Education Media looking to sell down second-lien term loan at 85

By Sara Rosenberg

New York, May 8 - Education Media & Publishing is currently in market with its seven-year second-lien term loan and is looking to syndicate the debt at an original issue discount of 85, according to a market source.

The second-lien loan is sized at $1.7 billion and carries pricing of Libor plus 950 basis points, of which 400 bps is cash pay and 550 bps is PIK.

Call protection on the loan is non-callable for 18 months, then at 104 for one year and at 102 for one year.

Credit Suisse and Lehman Brothers are the two banks that are currently marketing their portions of the second-lien loan. The third lead bank on the deal, Citigroup, is not involved in this process, the source said.

The loan funded in December to help fund Houghton Mifflin Co.'s acquisition of the Harcourt Education, Harcourt Trade and Greenwood-Heinemann divisions of Reed Elsevier for $4 billion, consisting of $3.7 billion in cash and $300 million of common stock of Houghton Mifflin Riverdeep Group plc, Houghton Mifflin's parent company.

In connection with the acquisition, Boston-based Houghton Mifflin was renamed Education Media & Publishing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.