School Specialty locks in $270 million asset-based facility, term loan

By Susanna Moon

Chicago, May 23 - School Specialty said it refinanced its credit facility with two new separate agreements, including a secured $200 million asset-based credit agreement with a group co-led by affiliates of Wells Fargo & Co. and GE Capital.

The new multi-year agreements also cover a separate secured $70 million credit agreement with an affiliate of Bayside Capital, Inc., according to a company press release.

The old credit agreement had outstanding borrowings of $130 million as of May 18, the release noted.

"The new asset-based credit agreement and term loan provides us with a more appropriate borrowing structure for our business," the company's president and chief executive officer Michael P. Lavelle said in the release.

"With this important step in our planning behind us, we are poised to further focus our business and accelerate our transformational activities to drive long term growth and enhance value to our customers and investors."

School Specialty is a Greenville, Wis.-based education company.

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