Simon & Schuster launches $1.1 billion term loan at SOFR plus 425 bps

By Sara Rosenberg

New York, Sept. 19 – Simon & Schuster (Century DE Buyer LLC) launched on Tuesday its $1.1 billion seven-year first-lien term loan with price talk of SOFR plus 425 basis points with a 0% floor and an original issue discount of 98.5, according to a market source.

The term loan has a 25 bps leverage-based step-down, a 25 bps step-down upon an initial public offering and 101 soft call protection for six months, the source said.

The company’s $1.21 billion of credit facilities 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.

Commitments are due at 5 p.m. ET on Sept. 27.

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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