Laureate to launch $775 million in term loan debt on Monday

By Sara Rosenberg

New York, Sept. 4 - Laureate Education Inc. is scheduled to hold a conference call on Monday morning to launch its proposed $775 million in senior secured term loan debt (B1), according to market sources.

Goldman Sachs, Citigroup, Credit Suisse and JPMorgan are the lead banks on the deal.

The debt is comprised of a $675 million covenant-light term loan B and a $100 million covenant-light delayed-draw term loan, with both tranches talked at Libor plus 325 basis points, sources said.

The two tranches will carry an original issue discount that is still to be determined, sources added.

Proceeds will be used to help fund the already completed buyout of the company by an investor group led by company chairman and chief executive officer Douglas L. Becker that includes Kohlberg Kravis Roberts & Co., Citi Private Equity, S.A.C. Capital Management, LLC, SPG Partners, Bregal Investments, Caisse de depot et placement du Quebec, Sterling Capital, Makena Capital, Torreal SA, Brenthurst Funds, Vulcan Capital and others.

Laureate already has a $400 million revolver in place that was completed in connection with the LBO.

Leverage is around 7.1 times.

Laureate is a Baltimore-based provider of higher education.

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