Learning Care talks $220 million term loan at Libor plus 450-475 bps

By Sara Rosenberg

New York, April 25 - Learning Care Group Inc. is talking its $220 million six-year term loan B at Libor plus 450 basis points to 475 bps with a 1.25% Libor floor and an original issue discount of 99 on the back of an announced Ba3 rating on the deal, according to sources.

The term loan has 101 soft call protection for one year and amortizes at a rate of 1% per annum.

The company's $260 million credit facility also provides for a $40 million five-year revolver.

Financial covenants include a maximum net total leverage ratio.

Bank of America Merrill Lynch, BMO Capital Markets and Jefferies Finance LLC are leading the deal that launched with a bank meeting on Tuesday.

Proceeds will be used to refinance existing senior secured notes due 2016.

Commitments are due on May 2 and closing is targeted for May 6, sources added.

Learning Care is a Novi, Mich.-based for-profit child care provider.

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