McGraw-Hill upsizes term loan to $1.58 billion, tightens pricing

By Paul A. Harris

Portland, Ore., April 28 – McGraw-Hill Global Education Holdings LLC upsized its six-year first-lien covenant-light term loan (Ba3/BB-) by $270 million to $1,575,000,000 from $1,305,000,000 on Thursday, a market source said on Thursday.

The proceeds were shifted from the concurrent junk bond deal, which downsized to $400 million from $670 million.

In addition to the upsizing, spread talk on the loan tightened to 400 basis points from 475 bps. And the offering price richened to 99.5 from 99.

Unchanged were the 1% Libor floor and the 101 soft call protection for six months.

Commitments were due on Thursday.

The deal is set to allocate on Friday or else early in the week ahead.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal.

The $1,925,000,000 credit facility (upsized from $1,655,000,000) also includes a $350 million five-year revolver.

Proceeds will be used to refinance existing debt, merge McGraw-Hill School Education into the McGraw-Hill Global Education credit group and fund a dividend, the source added.

McGraw-Hill is a New York-based provider of education materials.

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