Bryant & Stratton to launch $220 million credit facility on Wednesday

By Sara Rosenberg

New York, July 12 - Bryant & Stratton College is scheduled to hold a bank meeting at 10 a.m. ET on Wednesday to launch its proposed $220 million five-year senior secured credit facility, according to a market source.

GE Capital and Bank of America are the lead banks on the deal.

The facility consists of a $40 million revolver and a $180 million term loan B, with both tranches talked at Libor plus 500 basis points to 525 bps with a 1.5% Libor floor, the source said.

The original issue discount on the deal is expected to be announced at the bank meeting.

Proceeds will be used to refinance existing senior and mezzanine debt associated with the company's buyout in February 2008 by Parthenon Capital Partners, and fund a dividend payment to the sponsor/co-investors.

Pro-forma leverage for the transaction is 2.92 times senior and total.

Earlier this month, the issuer secured corporate ratings of B1/B+ with a stable outlook.

Bryant & Stratton College is a for-profit provider of post-secondary education with a network of 16 campuses in New York, Ohio, Virginia and Wisconsin, as well as online.

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