Knowledge Universe updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, Aug. 12 – Knowledge Universe Education LLC set pricing on its $645 million seven-year first-lien covenant-light term loan (B1/B) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, and lifted pricing on its $200 million eight-year second-lien covenant-light term loan (Caa1/CCC+) to Libor plus 925 bps from talk of Libor plus 875 bps to 900 bps, according to a market source.

Additionally, the original issue discount on the first-lien term loan widened to 98.5 from 99 and the discount on the second-lien term loan was changed to 98 from 99, the source said.

Also, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the call protection on the second-lien term loan was modified to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source continued.

Both term loans still have a 1% Libor floor.

The company’s $925 million credit facility also provides for an $80 million revolver (B1/B).

Commitments were due at noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Barclays and BMO Capital Markets are leading the financing.

Proceeds will be used to help fund the buyout of the company by Partners Group.

Closing is expected later this year.

Knowledge Universe is a for-profit provider of early childhood education in the United States and the parent company of KinderCare Learning Centers, as well as the brands Children’s Creative Learning Centers and Champions.

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