| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Paydowns > Headlines for Alto Energy International Ltd. > News item |
Laureate eyes repaying term loan debt with stock offering proceeds
By Wendy Van Sickle
Columbus, Ohio, Feb. 2 – Laureate Education Inc. is considering repaying some term loan debt with some of its expected $456.5 million proceeds from an offering of 35 million common shares, according to a 424B4 with the Securities and Exchange Commission.
The company is also considering redeeming or repurchasing its outstanding 9¼% senior notes due 2019 and/or its seller notes used to finance its acquisition of FMU Group.
Laureate has about $1.5 billion of term loans outstanding under its senior secured credit facilities with about $282.6 million of that amount due June 16, 2018 and bearing interest of 500 basis points.
Upon the closing and funding of the purchase price of a series A preferred stock offering in January, the applicable Libor margin for the 2021 extended term loan under Laureate’s senior secured credit facilities dropped to 750 bps, and the applicable Libor margin for the revolving credit line dropped to 375 bps.
At Sept. 30, the company had about $1.4 billion of 9¼% senior notes due Sept. 1, 2019, outstanding. Laurate said it has not caused a registration statement to be declared effective to complete the registration requirement for an exchange offer for the senior notes, resulting in special interest of ¾% a year to also be accruing on the notes.
The FMU seller notes have an outstanding balance of $97.6 million, mature on Sept. 12 and bear interest of about 14%.
The company said the notes could be repaid through tender offers, repurchased via open market transactions or called for redemption.
Credit Suisse, Morgan Stanley, Barclays, Macquarie Capital, J.P. Morgan, BMO Capital Markets Corp., Citigroup and Goldman, Sachs & Co. are the joint bookrunners for the offering.
Laureate is a Baltimore-based network of degree-granting higher education institutions.
© 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.