Cambium Learning to launch $575 million of term loans on Wednesday

By Sara Rosenberg

New York, Sept. 17 – Cambium Learning Group is set to hold a lender call at 10 a.m. ET on Wednesday to launch $575 million of term loans, according to a market source.

RBC Capital Markets is the left lead arranger on the deal.

The debt consists of a $425 million incremental first-lien term loan and a $150 million incremental second-lien term loan, the source said.

Proceeds will be used to help fund the acquisition of Rosetta Stone Inc. for $30 per share, representing an equity value of about $792 million.

Other funds for the transaction will come from balance sheet cash and equity from Veritas Capital, the current owner of Cambium.

Closing is expected in the fourth quarter, subject to customary conditions.

Currently, Cambium has a $609 million first-lien term loan priced at Libor plus 450 basis points and a $223 million second-lien term loan priced at Libor plus 850 bps.

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions. Rosetta is an Arlington, Va.-based provider of digital literacy and language education solutions to K-12, consumer and enterprise customers.

© 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.