Lakeshore cuts spread on $580 million term loan to Libor plus 350 bps

By Sara Rosenberg

New York, Sept. 29 – Lakeshore Learning (Lakeshore Intermediate LLC) reduced pricing on its $580 million seven-year first-lien term loan to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

Also, the company removed the 25 bps pricing step-down at 4x leverage from the term loan, revised MFN to 50 bps with a six-month sunset from 75 bps with a six-month sunset, removed leverage-based asset sale mandatory repayment step-downs, and added J. Crew, Serta and Chewy protections, the source said.

The term loan still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Jefferies LLC, BMO Capital Markets, Macquarie Capital (USA) Inc., Citizens and KeyBanc Capital Markets are the bookrunners on the deal.

Commitments continued to be due at noon ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners.

Lakeshore is a Carson, Calif.-based developer, distributor and retailer of educational products and classroom furniture, primarily serving the Early Childhood Education and K-5 markets.

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