Simon & Schuster flexes $1.1 billion term loan to SOFR plus 400 bps

By Sara Rosenberg

New York, Sept. 27 – Simon & Schuster (Century DE Buyer LLC) reduced pricing on its $1.1 billion seven-year first-lien term loan to SOFR plus 400 basis points from SOFR plus 425 bps, according to a market source.

In addition, the original issue discount on the term loan was revised to 99 from 98.5, the source said.

The term loan still has a 0% floor, a 25 bps leverage-based pricing step-down, a 25 bps step-down upon an initial public offering and 101 soft call protection for six months.

The company’s $1.21 billion of credit facilities (B2/B) also include a $110 million five-year revolver.

Jefferies LLC, KKR Capital Markets, HSBC Securities (USA) Inc., Mizuho, RBC Capital Markets, UBS Investment Bank, Goldman Sachs Bank USA, Credit Agricole and SPC are the lead arrangers on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by KKR from Paramount Global for $1.62 billion in an all-cash transaction.

Closing is subject to customary conditions, including regulatory approvals.

Simon & Schuster is a New York-based general interest publishing company.

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