Bryant & Stratton cuts B loan to $135 million, adds $30 million term A

By Sara Rosenberg

New York, Aug. 13 - Bryant & Stratton College downsized its term loan B to $135 million from $180 million and added a $30 million term loan A to the capital structure, according to a market source.

Also, pricing on the term loan B was flexed up to Libor plus 575 basis points from talk of Libor plus 500 bps to 525 bps, while the 1.5% Libor floor and original issue discount of 98 were left unchanged, the source said.

There is 101 soft call protection for one year under the B loan.

Meanwhile, the new term loan A is priced at Libor plus 550 bps with a 1.5% Libor floor, the source continued.

The company's credit facility still includes a $40 million revolver.

The facility now has a 31/2-year maturity, as opposed to the originally proposed five-year maturity, the source added.

GE Capital and Bank of America are the lead banks on the now $205 million, down from $220 million, deal.

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 to fund a dividend payment to the sponsor/co-investors.

As a result of the downsizing, the dividend payment was reduced.

Pro forma leverage for the transaction is now 2.6 times, as opposed to 2.92 times under the original deal.

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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