Ascend Learning downsizes facility by $35 million to $365 million

By Sara Rosenberg

New York, Nov. 19 - Ascend Learning reduced the size of its credit facility to $365 million from $400 million, while leaving price talk unchanged, according to a market source.

Under the changes, the first-lien term loan B (B1) is now sized at $250 million, down from $260 million, and the second-lien term loan (Caa1) is now sized at $75 million, down from $100 million, the source said.

The $40 million revolver (B1) was left unchanged.

Price talk on the first-lien term loan is Libor plus 475 basis points with a 1.5% Libor floor and an original issue discount of 981/2, while talk on the second-lien is Libor plus 850 bps to 900 bps with a 1.5% Libor floor and an original issue discount of 98.

Call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

Bank of America, GE Capital and Barclays are the lead banks on the deal.

Proceeds will be used to refinance existing debt and replace some equity with debt.

Ascend Learning is a Stilwell, Kan.-based provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

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