Knowledge Universe sets talk on first- and second-lien term loans

By Sara Rosenberg

New York, July 28 – Knowledge Universe Education LLC released price talk on its $645 million seven-year first-lien covenant-light term loan and $200 million eight-year second-lien covenant-light term loan in connection with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 475 basis points to 500 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $925 million credit facility also provides for an $80 million revolver.

Credit Suisse Securities (USA) LLC, Barclays and BMO Capital Markets are leading the financing.

Commitments are due on Aug. 11.

Proceeds will be used to help fund the buyout of the company by Partners Group.

Closing is expected later this year.

Knowledge Universe is a for-profit provider of early childhood education in the United States and the parent company of KinderCare Learning Centers, as well as the brands Children’s Creative Learning Centers and Champions.

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