Plato Learning to launch $390 million credit facility on Thursday

By Sara Rosenberg

New York, March 27 - Plato Learning is scheduled to hold a bank meeting at 10 a.m. ET on Thursday to launch a proposed $390 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and Jefferies & Co. are the lead banks on the deal.

The facility consists of a $25 million five-year revolver, a $240 million six-year first-lien term loan and a $125 million seven-year second-lien term loan, the source said.

Official price talk is not yet available, the source continued.

A PREM14A filed with the Securities and Exchange Commission on Tuesday had the revolver and first-lien term loan expected at Libor plus 500 basis points with a 1.5% Libor floor and the second-lien term loan expected at Libor plus 900 bps with a 1.5% floor.

Proceeds will be used to help fund the acquisition of Archipelago Learning for $11.10 per share in cash, representing an equity value of about $291 million.

Other funds for the transaction will come from $60 million of equity.

Closing is expected in the second quarter, subject to regulatory approvals and the approval of Archipelago Learning shareholders.

Leverage is 3.8 times through the first lien and 5.9 times total, the source added.

Plato, a portfolio company of Thoma Bravo LLC, is a Bloomington, Minn.-based provider of education technology solutions. Archipelago Learning is a Dallas-based subscription-based software-as-a-service provider of education products.

© 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.