Corporate Executive Board to launch $625 million facility on Tuesday

By Sara Rosenberg

New York, July 13 - The Corporate Executive Board Co. is scheduled to hold a bank meeting on Tuesday to launch a proposed $625 million senior secured credit facility, according to a market source.

Bank of America Merrill Lynch and Barclays Capital Inc. are the joint lead arrangers and bookrunners on the deal.

The facility consists of a $50 million five-year revolver, a $200 million five-year term loan A and a $375 million seven-year term loan B.

Based on filings with the Securities and Exchange Commission, revolver and term loan A pricing is expected at Libor plus 300 basis points, and term loan B pricing is expected at Libor plus 350 bps with a 1.25% Libor floor.

The term loan B has 101 soft call protection for one year, the source said.

Amortization on the term loan A is 1.25% quarterly for the first two years and 2.5% quarterly in the next three years. The term loan B amortizes at a quarterly rate of 0.25%.

Covenants include leverage and interest coverage ratios.

Proceeds will be used to help fund the acquisition of SHL, a U.K.-based provider of cloud-based talent measurement and management services, from funds managed by HgCapital and Veronis Suhler Stevenson for $660 million in cash, subject to customary pre- and post-closing adjustments.

Corporate Executive Board is an Arlington, Va.-based member-based advisory company.

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