Laureate calls $1.13 billion of 9¼% notes at 104.625 via new issue

By Susanna Moon

Chicago, May 11 – Laureate Education Inc. plans to redeem $1,125,400,000 of its 9¼% senior notes due 2019 on May 31 at a price of 104.625% of par using proceeds of a new issue.

The redemption amount is equal to the company’s outstanding 9¼% notes other than $250 million of the notes that were exchanged for substantially identical but non-redeemable notes on April 21, according to an 8-K filing with the Securities and Exchange Commission.

Laureate said it decided to refinance its corporate debt in April, pushing out the maturity and lowering the costs through a series of transactions.

The company priced $800 million principal amount of 8¼% senior notes due 2025 on April 26 and refinanced its senior secured credit facility for a new $385 million revolving credit facility due April 2022 and a new $1.6 billion syndicated term loan due April 2024.

Then on April 28 the company called the 9¼% notes for an aggregate price of about $1,205,600,000.

In the exchange, Laureate entered into separate privately negotiated note exchange agreements with holders to exchange the notes for shares of the company’s class A common stock by Feb. 7, 2018, which is about a year after the company’s initial public offering.

The number of shares issuable in the exchange was 104.625% of par, or about $261.6 million, divided by $14.00, the IPO price per share.

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.