Cambium calls $140 million 9¾% notes due 2017 using new loan proceeds

By Susanna Moon

Chicago, Dec. 11 – Cambium Learning Group, Inc. called its $140 million of outstanding 9¾% senior secured notes due 2017 using proceeds of a new $135 million credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The total purchase amount for the notes is $146,825,000, consisting of the $140 million principal amount and $6,825,000 of accrued interest to but excluding the redemption date of Feb. 15.

The company also used cash on hand to fund the redemption.

“This new credit facility provides us with a debt structure that better matches our seasonal capital needs at a significantly lower cost of capital,” John Campbell, chief executive officer of Cambium, said in a company press release.

The company said on Dec. 23, 2014 that it repurchased $15 million of the notes for $15 million, leaving $140 million of the 9¾% notes outstanding.

Cambium is a Dallas-based education services provider focused on at-risk and special needs students.

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