Laureate upsizes to $575 million, talks tap of 2019 notes at 9¾% area

By Paul A. Harris

Portland, Ore., Oct. 25 - Laureate Education, Inc. upsized its notes offering to $575 million from $350 million, talking the add-on to its 9¼% senior notes due 2019 (Caa1/CCC) with a yield in the 9¾% area, an informed source said on Thursday.

The deal is expected to price on Friday.

J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., KKR Capital Markets and Morgan Stanley & Co. LLC are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes are callable with a make-whole call at Treasuries plus 50 bps until Sept. 1, 2015 and then will become callable at 106.938.

The Baltimore-based provider of higher educational services plans to use the proceeds to fund the tender offer for a portion of its existing 10¼% PIK toggle notes.

The original $350 million issue priced at par on July 20, 2012. The add-on notes will become immediately fungible with the existing notes.

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